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Investigation showed that about N134.44 billion out of the approved N522.74 billion will soon be paid as refunds to some states.
The top government source added: “Yes,
as at December 27, 2016, all the 35 states had received the N388.3
billion refunds. The balance of N134.44 billion will soon be accessed.”
Following protests by states against
over-deductions for external debt service between 1995 and 2002,
President Muhammed Buhari had on December 2, 2016 approved the release
of N522.74 billion to states as refunds pending reconciliation of
records.
Each state is entitled to a cap of N14.5 billion being 25 per cent of the amounts claimed.
But the government has raised a team to scrutinise claims by states and reconcile with available records.
These developments were contained in a
statement issued in Abuja by the Special Adviser on Media to the
Minister of Finance, Mr. Festus Akanbi.
The statement said: “The Federal
Government has reached a conditional agreement to pay 25% of the amounts
claimed subject to a cap of N14.5 billion to any given state. Balances
due thereafter will be revisited when fiscal conditions improve.
“Mr. President’s overriding concern is
for the welfare of the Nigerian people, considering the fact that many
states are owing salaries and pension, causing considerable hardship.
“Therefore, to ensure compliance with
the directive that a minimum of 50% of any amount disbursed is dedicated
to this, funds will be credited to an auditable account from which
payments to individual creditors would be made. Where possible, such
payments would be made to BVN linked accounts and verified.”
But any state paid refunds in excess of
its outstanding claims might suffer deduction from its monthly
allocations from the Federation Account.
It said: “Due to the fact that
reconciliation is still ongoing and the final outcome might show an
under or overstatement of claims, an undertaken has been signed by state
governors, declaring that in the event the amount already paid exceeds
the verified claim, the surplus would be deducted directly from the
state’s monthly FAAC allocations.
“The total amount approved by the
President is N522.74 billion and is to be paid in batches. The first
batch of N153.01 billion is currently being processed for release to 14
state governments.
“The release of these funds is intended
to support the fiscal stimulus programme of the President Muhammadu
Buhari-led administration to provide direct stimulus through government
spending. It is particularly aimed at boosting demand at consumer level
and reversing the slowdown in economic activity.”
Read More at: The Nation News
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