State Governments Demand $6.9b Paris Club Refund

Nigerian States are demanding about $6.9billion Paris Club loan deductions from the FG, reports say. The government has raised a verification and reconciliation team on the claims by states to end over deduction of loans which have crippled many states.

It was also learnt that the government has set guidelines for accessing the refund.

According to a document obtained by The Nation, states are demanding US$6, 923,722,131.81 refund from the Federal Government.

The states based their requests on unaccounted deductions on “Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) Report of the Reconciliation of State Governments’ External Debts, Vol. 1 (May 2007)”.

The breakdown is as follows: Abia ($151, 410, 816.39); Adamawa($161, 968, 221.27); Akwa Ibom($344, 122,584.90); Anambra($162, 163, 091.98); Bauchi  ($182, 192, 756.59); Bayelsa ($329, 744, 322.49); Benue($81, 580, 708.60); Borno($194, 461, 850.74); Cross River ($160, 936, 263.51); Delta ($365, 655, 143.86); Ebonyi($119, 419,427.28); and Edo( $161, 354, 346, .83).Others are  Ekiti($126, 432, 758.86); Enugu($142, 034, 156.54); Gombe ($118,486,826.45); Imo($185, 451, 792. 92); Jigawa ($188, 282, 561.77); Kaduna($204, 549, 118.60); Kano( $287, 952, 190.23); Katsina($217, 274, 991.01); Kebbi($158,344,357.37); Kogi($159, 674,903.18); Kwara($135, 646, 207 .33); Lagos($223, 773, 195.58);

The list includes Nasarawa($120, 557, 593.92); Niger($191, 014, 388.20); Ogun($152, 036, 415.75); Ondo ($ 185, 527, 107.67); Osun(4167, 261, 095.11); Oyo(4209, 314, 168.61); Plateau($149, 512, 027.96); Rivers ($462, 593, 183.07); Sokoto($170, 625, 921.77); Taraba(4148, 662,635.52);  Yobe($143, 393,460.04); Zamfara($144, 169, 154. 81); and FCT($18, 142, 185).

Photo credit; The Nation

Some states sought refund from 1982 to 2006, others put their timeline at 1995 to 2006.

The President is said to have decided to direct the release of some refund (first and second tranches) to states pending reconciliation of debt records to enable them pay outstanding salaries and pensions.

He took the decision after getting the report of a Presidential Committee which looked into all liabilities owed to all States of the Federation by the Federal Government of Nigeria (FGN), The Nation learnt.

“You may kindly wish to find below, the Guidelines for the consideration of claims by all States:

1. All submissions should be addressed to the Presidential Committee on the Verification of States’ Claims of Over-Deductions from Revenue Allocation Account in respect of External Debt Service Payments (1992-2002) and submitted to the Honourable Minister, Federal Ministry of Finance, with a copy to the Director-General, Debt Management Office (DMO);

2. It is the responsibility of each participating State to establish its case and taking into consideration that the burden of proof rests with the State.

iii. The use of Consultants by any State is not acceptable. States should forward their submissions directly to the Committee.

1. Each submission by States should be accompanied by the following documents:
2. Demand Notices from Creditors on a loan-by-loan basis in respect of loans on which claims are based;
3. Details of all States’ loans
4. Loan Agreements;
5. Evidence of Payments to the Creditors (authorised by the Creditors);
6. Evidence of deductions from the States’ Revenue Allocation;
7. Category of debts on which claims are being made;
8. Evidence of amount outstanding on a year-by-year basis (from 1992- 2002);
9. Where applicable, for every claim, there should be confirmation of the status of the debt by the creditor; and,
10. Any other relevant information/document.

“The Federal Government would issue long tenored instruments of between 5 to 10 years to States with valid claims of over deduction, as a means of refunding the States.”