State Governors in Nigeria

A total of N243.8 billion has been released by the Nigerian Government to the 36 states of the federation as refunds of over reductions made from their accounts for payment to Paris Clubs, London Clubs and other multilateral debts between the years 1995 – 2002.  The Acting President of Nigeria Professor Yemi Osinbajo is said to have authorized the release according to the Minister of Finance Kemi Adeosun.

Emerging details from the release revealed that three Niger Delta States of Akwa-Ibom, Rivers and Delta State together with Kano State received the largest payment of N10 billion. The four states are also said to have paid the largest amount among states when their funds were unjustly deducted by the Nigerian Government several years ago.

A finance ministry spokesperson Salisu Dambatta said in a statement that the released of the funds to the states were premised on the promise that 75% of it will be used to pay a backlog of salaries and pensions of states and local government workers and pensioners. The federal finance ministry is set to monitor the manner the funds are spent in line with the understanding reached with the state governments.

Nigeria’s Minister of Finance

The recent release of the Paris Club deductions is the second tranche of payments as the first tranche was released last year. The first payment was also based on the condition that 50 % of the funds be used to offset the salaries and pensions of states and local government workers Just like the second payment. However, it is unclear if this requirement was faithfully implemented because many months after the first disbursement of the payments many states still owed workers and pensioner salaries and pensions.

The huge backlog of salaries and pensions owed workers in states and local government is buttressed by the President of the Nigeria Union of Local Government Employees NULGEES Ibrahim Khaleel. Expressing deep regrets and disappointments on the suffering of millions of local government workers in Nigeria the union leader disclosed that about 23 states of the federation currently owed local government workers arrears of salaries ranging from 10 – 16 months.Below

Below is the full list of The second installment payment of Paris Club Refunds to the states as released by the Central Bank Of Nigeria.

  1. Abia            – N 5.7 billion
  2. Adamawa    – N 6.1 billion
  3. Akwa-Ibom – N 10 billion
  4. Anambra    –  N 6.1billion
  5. Bauchi        –  N 6.8billion
  6. Bayelsa       – N 10 billion
  7. Benue        –  N 6.8billion
  8. Borno        –  N 7.3billion
  9. Cross Rive –  N 6.0billion
  10. Delta          –  N10 billion
  11. Ebonyi        – N5billion
  12. Edo            – N6.9 billion
  13. Ekiti           –  N4.7billion
  14. Enugu         – N7billion
  15. Gombe       – N4billion
  16. Imo            – N7.0billion
  17. Jigawa        – N7.1billion
  18. Kaduna       -N7.7billion
  19. Kano          – N10 billion
  20. Katsina       – N8.2billion
  21. Kebb           -N5.9billion
  22. Kogi           – N6.0billion
  23. Kwara        -N5.1billion
  24. Lagos –        N8.3billion
  25. Nasarawa –  N4.5billion
  26. Niger         – N7.2billion
  27. Ogun         – N5.7billion
  28. Ondo        – N7.0billion
  29. Osun         – N6.3billion
  30. Oyo          –  N7.9billion
  31. Plateau     – N5.6billion
  32. Rivers       – N10billion

These are the details of payments made to the 36 states of Nigeria as refund of over-deduction on Paris Club, London Club loans and multilateral debts on the accounts of States and local governments between the periods 1995-2002

Now that the expected funds have arrived and are shared among the 3 tiers of government, it remains to be seen what the various state governments will do with their allocations. The governors can serve the interest of the country better if only they will channel the received funds towards the payment of workers and pensioners salaries and pensions owed for several months. This alone would make a big impact and have a cumulative effect on the economy of a larger Nigeria.