Advertisement

Advertisement

Advertisement

NLC, SERAP, others warn FG against releasing N649bn Paris Club refund to outgoing govs

0

Get real time updates directly on you device, subscribe now.

Sequel to the disclosure by the Minister of Finance, Mrs Zainab Ahmed, on Thursday that the Federal Government was set to disburse the outstanding N649.434bn to  states, the Nigeria Labour Congress (NLC) and Socio-Economic Right and Accountability Project (SERAP) have advised the Federal Government to delay the disbursement of the refund to states until after  the  inauguration of incoming governors on May 29.

Speaking at a press conference  on the activities of her ministry, Ahmed  said  the  money  was  the last tranche of the refund.

She said, “For the final phase of the Paris Club debt refund, the total sum of N649.434bn was verified by the ministry as the outstanding balance to be refunded  state governments.

The payments made by the Central Bank of Nigeria as of March 2019 is N691.56bn. The increase in CBN payments partly arose from the exchange rate differential at the point of payment. Although some states still have outstanding balances, they will be refunded in due course.”

But reacting to the development, the President  of the NLC, Mr Ayuba Wabba on Friday that the union’s recommendation to the  Federal Government would be to delay the disbursement  of the money till after May 29, when  the newly elected governors would have been sworn in. He said the reasons border on accountability and the manner  the  previous refunds were used  by some governors.

Wabba  said, “The incumbent governors have a few days to go, so I am of the strong view that the money should actually be given to the  incoming governors who would start on a clean slate and address substantial issues in governance.

Clearly, some of the outgoing governors would like to use the money to pay severance allowances, which I think is not a priority,  and you know that some of the states have spent huge amount of money on  their  build-up  for  the 2019 elections.”

Similarly, the Socio-Economic Right and Accountability Project also said the disbursement  of the money should be deferred  until after May 29.

SERAP’s Executive Director, Adetokunbo Mumuni said: “Since many of them are  in  the twilight of their tenure, the payment should be delayed till after the inauguration of new governors.

If somebody has only a couple of days (11 days) to the end of his tenure, why give them an opportunity to superintend that volume of money,” Mumuni explained.

Banking Code

Get real time updates directly on you device, subscribe now.

You might also like

Leave A Reply

Your email address will not be published.