Why Nigerian govt cannot disclose details of Paris Club refund yet – Adeosun

Kemi Adeosun
Minister of Finance, Kemi Adeosun

The Minister of Finance, Kemi Adeosun, on Monday said Nigerians would not get the full details of the disbursements to the 36 state governments in respect of the Paris Club Refunds until the final reconciliation of the records were completed.

In what appears a reaction to aPREMIUM TIMES’ exclusive report, which accused the government of lack of transparency by refusing to avail the public of the details of disbursement so far, Mrs. Adeosun said the Federal Government had consistently complied with all extant rules and regulations in the disbursement of the Paris Club refunds to state governments.

“The Federal Government’s disbursement process is transparent and targeted at the attainment of specific economic objectives,” she said.

“The inability of some sub-national governments to meet salary and other obligations was considered inconsonant with the Federal Government’s economic stimulus programme.”

She pointed out that “claims (by state governments) with regard to over deductions had been made to the Federal Government, consistently since 2005.”

To reconcile the records and facilitate full disbursement, Mrs. Adeosun said the Debt Management Office, DMO, saddled with the responsibility had initially requested for a period of 22 months to complete.

That DMO is handling the reconciliation in conjunction with the Office of the Accountant General of the Federation, OAGF and the relevant state governments.

However, President Muhammadu Buhari had directed that the exercise be completed within 12 months, considering the plight of salary earners and pensioners and the need to stimulate the economy.

This followed the inability of majority of Nigeria’s 36 states to pay workers’ salaries despite receiving government bailout.

To give the states additional support and enable them meet those challenges, the minister said the president gave an express anticipatory approval for the release of up to 50 per cent of the claim of each state, pending final reconciliation.

She said the disbursements were staggered in batches and payments made only when the claims of each state had been reconciled with the facts at the disposal of the federal government.

“Specifically, information was available that some states had been paid, either in full or in part, under previous administrations. This necessitated a more detailed review, for the states in question.

“The release of the first tranche, representing up to 25% of claims, being N522.7 billion commenced in December 2016. Disbursement was subject to an agreement by state governments that 50% of any amount received would be earmarked for the payment of salaries and pensions,” the minister explained.

Besides, she said, each state governor had given an undertaking that excess payments would be recovered from their share during the Federation Accounts Allocation Committee, FAAC, meeting if the final reconciliation found the amount paid under the anticipatory approval exceeding what was due to them.

Giving an update on the reconciliation exercise so far, Mrs. Adeosun said to date, nine batches have been processed, while some balances were outstanding to the possible credit of some states.

She then said disclosure can only be made after full reconciliation.

“Given the foregoing, complete and final figures can only be released and published after each state and the Federal Government have reconciled and agreed on the sums due,” she said.

She said that during the last National Economic Council meeting on Thursday March 16, 2017, President Muhammadu Buhari had instructed her and the Central Bank of Nigeria governor, Godwin Emefiele, to commence the process of resolving the balance of the approved amount.

“The overriding consideration for any further releases will be the current and projected cash flows of the Federation as well as the outcome of the independent monitoring of the compliance with terms and conditions attached to the previous releases.

“The Minister of Finance would like to reaffirm the commitment of the administration to publish all relevant information on the Paris Club refunds,” she said.


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  • Wakawaka

    What’s wrong in telling Nigerians what’s been paid out so far? Belated and save-face response.

    • Siraj Muhammad Funtua

      Of course transparency should be seen with this government of the people. It is unfortunate that most government official working around PMB are not ready to see that Nigeria is working as it should. The masses most wake up from their slumber to face these unrepentant politicians especially the Governors and the memberd of the national Assembly. As for PMB, he needs our sincere constant prayers and support. You cannot fix a nation that has been mismanaged for over 16 years within 2 years. God bless Nigeria.

      • George

        God hate you forever. Your half dead Buhari refused to disclosed what he directed the finance minister to release to the governors and you are here blaming the senates and the governors who doesn’t involved.

        God hate you and your types.

  • Fairgame

    Allocations to states were once upon a time published by the ministry of finance in daily newspapers and online and that is transparency. Why hide what is being given to states? Evil thrives in secrecy and that is what this government knows. They keep Nigeria busy with the theatricals while hiding the shady dealings in NNPC and the allocations and monies being given to states. Shame.

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  • dami

    Can you believe this crap?
    Tell us how much you have paid already then…then after reconciliation update your press release…
    That’s what you get when you hire an analyst as your finance minister.

  • Dawood

    The Buhari administration is supporting and abetting the looting of our national treasury by the thieving governors. They promised releasing the names of looters, then they gave a ridiculous excuse for not releasing the names. Now an open, naked thievery of the Paris Fund is going on, and all Ms. Adeosun can say for lack of transparency is some bullshit excuse.

    • ::????????

      ……(2) Paris Club debt: Questions Arising for Nigerians

      • What is the logical explanation to extenuate fraud,
      if Obasanjo spent two more years (from the year 2005) without deciding the
      liability of each state’s foreign debt within the total Paris debt of $18billion
      – does incompetence alone explain Obasanjo’s failure or was intended fraud
      implicated; such that 12 years later the incumbent Buhari government says it is
      now unusure if double repayments to the 36 are currently being made?

      • Is it true that neither the Umaru Yar’Adua government
      nor Goodluck Jonathan’s government ascertained each state’s liability for the
      Paris Club payment of $18billion; and, is it true that for eight years between
      the years 2007 and 2015 no state was paid anything as Paris club excess
      deduction before Muhamadu Buhari took office on 29th May 2015?

      • Incircle

        @disqussant777:disqus

        The truth
        is that President Buhari did NOT make a single sensible appointment since he
        resumed office as president and that’s why Nigeria is looking like a failed
        state. President Buhari appointed notorious thieves, criminals, some nominees
        of certificate forger in Lagos, plus, a raft of stuttering ignoramuses
        handed
        to him by those who financed the Buhari presidential campaign. Federal parastatals
        in Nigeria now float driftless with no compass for direction. The cabinet itself
        has proved unable since October 2015 to think up any coherent policy, even as
        Nigeria fell into economic recession in April 2016 – which the country has not
        exited till today. Calling out foreigners is to be intentionally blind to these
        facts that the Buhari government is the first public emergency that need be
        repealed and replaced, if Nigeria is to get out of this total mess.

    • Dokita Omowe

      @disqussant777:disqus

      IT IS NOT DIFFICULT TO KNOW THERE’S NO GOVERNMENT PROPERLY SO-CALLED IN NIGERIA.

      SINCE YEAR 2005 THE GOVERNMENT OF NIGERIA DOES NOT KNOW WHAT IT OWES 36 STATES;

      IF ANY, AS PARIS DEBT DEDUCTION, AND DOES NOT KNOW IF IT HAD PAID ANY STATE IN EXCESS.

  • Otunba

    This Nigeria is simply not working and some people just refuse to agree. It is not the type of Paa Buhari who can fix Nigeria. He has not the energy and drive; it is as simple as that. Before you can tame corruption here, you need to agree to a total overhaul of the entire system and allow Institutions to be established and be seeing to be working, independently. That is the type of Nigeria we disire in this 20th century. What we are asking for is not so difficult to achieve, but the people running the system just refuse to allow for tranparency because of corruption. It is very unfortunate.

    • Wale A.

      @disqus_6Vj318m1sZ:disqus

      Zero multiplied by zero will still be zero. This Ministerial cabinet as presently constituted
      is a shambles which has never worked well for one day. Re-assigning portfolios to the same
      assorted mediocre and merely blinking and mimicking Ministers is the full meaning of idiocy.

  • michaelstain

    Transparency is the key to good government

  • Mary

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  • GEJ FOREVER

    Buhari is a common criminal …. a WASC forger …. a friend of the corrupt including Bola Tinubu, Rotimi Amaechi, Raji Fashola, Rochas Okorocha, Bukola Saraki, Buratai, Danbazzzau, Kwankwaso, Tambuwaal, Atiku, El Rufai, Fayemi, Aregbesola, Sylva, etc. etc. yet some misguided Nigerians expect Buhari to fight corruption.

    Buhari is the epitome of corruption …….. Corruption cannot fight corruption!

  • George

    Those who planned to disgrace GEJ are now disgracing themselves daily.

    Simple disclosure we ask but see long explanations that has no meaning to the topic, thank God Buhari has disgraced himself before going to the grave because he could have carry that fake of incorruptible persona to hell fire.

  • isioku

    This is complete balderdash! If you have not reconciled, why release to states. Since you deemed it appropriate to release funds without conciliation why give it as excuse in simply disclosing what you have so far released? Oh! So we should wait for 22 months at which time we would have forgotten the issue and attention shifted to elections? Last admin published allocations in newspapers and websites. Some states followed suit. Now no one publishes not wven FG. And we are to believe this is change for the better? I am disappointed in this govt. It pains me so because my voter card was stolen to make sure i didnt vote for PMB. Now this! Should i be grateful to folks who stole my card?