Kwara Govt cries out: "We are yet to receive Paris Club refund"

Jude Egbas 10:23 - 25 December 2018

Former Kwara State Governor Abdulfatah Ahmed

Again, the Kwara State Government says it is yet to receive the final tranche of the London-Paris Club refund.

On Monday, the Minister of Finance, Mrs Zainab Ahmed, reportedly announced the release of $5.4b to an unspecific number of states as payment of the Paris Club refund.

However, the Kwara State Commissioner for Finance, Alhaji Demola Banu, in a statement issued in Ilorin, said Kwara State is still awaiting its share of the payment from the Federal Government.

Alhaji Banu said the state government has complied with all conditions specified by the Federal Government for the Paris Club final tranche, including a fresh presentation to the Minister of Finance, but is yet to receive the payment.

What is this Paris Club refund?

The Paris Club refunds are simply monies accrued from over-deductions from each state by the federal government before Nigeria’s exit from the London/Paris Club of creditors.

The funds became available when Nigeria reached a final agreement for debt relief with the Paris Club in 2005.

Nigeria runs a pseudo federalism where monies generated from taxes and crude oil sale is shared among the three tiers of government based on a pre-agreed percentage.