Buhari approves fresh 50% Paris refunds for states: Govs to pay salary arrears

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NOVEMBER 27, 2017:  Cash strapped states in Nigeria, on Monday got fresh reprieve, as President Muhammadu Buhari approved payment of another 50% Paris Club refunds to the states, to enable them pay salaries to workers for the month of December.

The latest payments announced by Governor Rochas Okorocha of Imo State after meeting with the President on Monday, is coming on the heels of outcry from labour leaders, civil society groups and other non state actors, who are calling for probe of monies so far paid to the states under the Paris Club refund, by the Federal Government since the inception of this administration.

President Muhammadu Buhari had earlier approved the release of N522.74 billion as first tranche of payment to states, in 2016, in respect of what was said to be debt service deductions in respect of the Paris Club, London Club and Multilateral debts of the Federal and state government from 1995 to 2002.

Similarly, only last week, the President also directed the Governor of Central Bank, Godwin Emefiele to pay N800 million to each of the 36 states of the federation, under the Budget Support Loan Facility for the Months of July and August, 2017. Governor Okorocha, who did not disclose the amount approved by the President , assured that with the refund, workers in the states will not be owed salaries by any state government in December.

“The President has expressed the need to ensure that every Nigerian, especially the workers, have a beautiful Christmas and the issue of outstanding Paris Club money was discussed and that was taken care of, to make sure that workers in various states and everywhere in the country get to celebrate the Christmas.

“We also used the opportunity to review our working relationship with the president from the states and we found out that we are in harmony.

“There is no difference between us and the president. Everybody seems to be happy working together. But particularly, we commended the president for getting Nigeria out of recession within such a short time. We commended Mr. President and everybody left quite happy.”

Okorocha also expressed the hope that all outstanding issues on the reconciliation of the differences in the Paris Club refund are concluded soon.

“We are looking at getting the balance of Paris Club refund thrashed out once and for all. We also made a request for Mr. President’s approval that the balance should form part of our 2018 budget, because we can’t include it until we are sure that the money is coming. That was also sorted out.”

“So, as it is now, the issue of workers took the centre stage and Mr. President was concerned about those who depend on their salaries to feed their families and pay their house rent and he had the assurance from the governors that we will meet up those obligations. It was emphasised that states and federal governments must work together to get Nigeria out of its present economic predicament, to make Nigeria a better society for all of all.”

Governor El-Ruffai of Kaduna state, in his contribution, said the 50 per cent approved by the President was part of the original 50% earlier approved to the states by the President in 2016.

According to him, ” The payment started from last year. We still have the balance of the first 50 per cent. This is what the president said should be paid to state governments to meet their obligations before Christmas because he’s concerned that many families depend solely on their salaries for rent, for the festive period. That had been decided. The balance of the first 50% is what we are expecting now before Christmas. The President has approved that and said it must be paid.”

He also revealed that ” there is another 50% that needs to be paid when the figures are reconciled. The reconciliation is going to be concluded before the end of the year. The Chief of Staff to the President will ensure that the committee working on the reconciliation will conclude the work before the end of the year.

“So, what the governors are requesting from the president is a directive – go ahead to include the next 50 per cent in your 2018 budget and that is going to be looked at” he said.

BusinessDay