News

May 25, 2023

Paris Club debt: FG to stop deductions from states’ accounts

Zainab Ahmed

Zainab Ahmed

•Pay back monies so far deducted

•As Kwara’s gov, Gov Abdulrazaq emerges NGF chairman, Oyo’s Makinde vice

By Henry Umoru

The federal government has agreed to stop deductions from the state governments’ accounts in order to meet the local government councils’ London/Paris Club obligations.

It also resolved to return to states monies already deducted from their respective accounts.

Recall that this issue had been a source of disagreement between the federal government and states.

Chairman of the Nigeria Governors Forum, NGF, and Sokoto State governor, Aminu Tambuwal, disclosed this late Tuesday night while briefing governors across the 36 states of the federation in a meeting in Abuja.

He said the Finance Minister, Zainab Ahmed, who disclosed news of the federal government’s decision about the deduction stoppage, also said government would ensure states got their refunds.

The meeting also saw the emergence of Kwara State governor, Abdulrahman Abdulrazaq, as new chairman of the NGF, while Oyo State governor, Seyi Makinde, emerged as vice chairman.

Tambuwal said:  “The minister of finance has granted the request of our forum to immediately stop further deductions from the accounts of states to meet local government councils London/Paris Club obligations and the monies so far deducted be paid back to the states.

“On the leadership of the forum, the governor of Kwara State, Abdulrahman Abdulrazaq, emerged the new chairman of the Nigeria Governors’ Forum through a consensus, and the governor of Oyo State, Seyi Makinde, is now the vice-chairman.

“Members expressed satisfaction with the success of the just concluded Induction for new and returning Governors that took place between 14 and 19, May 2023.