EXCLUSIVE: Second Paris Club Loan Refund: Nigerian govt to make tougher demands on states – Adeosun

Kemi Adeosun, Minister for Finance [Photo credit: The BusinessPost]
Kemi Adeosun, Minister for Finance [Photo credit: The BusinessPost]

The Federal Government is yet to release the second tranche of London-Paris Club Loan refunds to the 36 state governments, Minister of Finance, Kemi Adeosun, confirmed on Thursday in Abuja.

The Minister, who spoke exclusively to PREMIUM TIMES, said the Federal Ministry of Finance was still working with the Presidency to determine the terms and conditions that would guide the disbursement of the funds.

“It’s not ready yet,” the minister said. “Before the payment of the first tranche of the funds, the President directed the states to use 50 per cent for the payment of arrears of salaries, gratuity and pensions to their workers.

“A lot of the states complied with the directive. When we are ready, part of the guidelines for disbursement will be that the states use 70 per cent of the payment for the same purpose,” she said.

However, the minister did not say why most of the states were still owing huge backlog of salaries to their workers.

The Nigeria Union of Local Government Employees, NULGE, said about 23 states of the federation currently owed local government workers’ arrears of salary ranging from one to 16 months.

The national president of the union, Ibrahim Khaleel, named Bayelsa State as owing local council workers for between 10 to 16 months, followed by Kogi, seven to 15 months and Delta, eight to 14 months.

Other states include Kaduna (12 months), Oyo (three to 11 months), Edo (10 months), Abia (five to nine months), Kwara (two to nine months), Benue (nine months), and Nasarawa (seven months), while Ondo, Ekiti, and Imo are owing six months.

Zamfara has not implemented minimum wage, while Adamawa, Rivers, Akwa Ibom, Ebonyi, and Plateau states owe four months each, and Taraba and FCT (three months).

Also, Osun State has been paying half salaries for more than 24 months, while few months are being owed salaries in Enugu. Ogun and Ekiti have continued to withhold union dues deducted from workers’ salaries for the past seven and nine months respectively.

Cross River state workers, who are being owed between one to three months salaries, have continued their strike action, following their refusal to heed to the plea by the state government for them call off the action this week.

Following the approval of the payment of the refund in the first tranche of disbursement, a total of N516.38 billion was paid to the 36 States and the FCT.

On November 21, 2016, President Muhammadu Buhari had approved the partial refund of long standing claims by state governments in respect of over-deductions from their Federation Account Allocation Committee, FAAC, allocation for external debt service between 1995 and 2002.

The debt service deductions were in respect of the Paris Club, London Club and Multilateral debts of the Federal and State governments, which Nigeria reached a final agreement for debt relief with the Paris Club in October 2005.

Apart from the refund meant to assist the state governments sort out the huge arrears of salaries to their workers, and alleviate the challenges workers were facing, the President said the funds were part of his government’s efforts to stimulate the economy.

Consequently, the disbursements were premised on the condition that a minimum of 50 per cent would be applied for the payment of workers’ salaries and pensions.

A senior Ministry of Finance official familiar with the issue told PREMIUM TIMES that the payment of the second tranche of payment was delayed, because the government was to review the report of the impact of the releases on the effort of the states government defray their arrears to the workers.

“The impact analysis report is being compiled by the Federal Ministry of Finance for onward submission to the Acting President, Yemi Osinbajo, as part of the process for approval for the release of the second tranche of payment,” the official said. He requested that name should not be disclosed, as he was not authorised to speak on the issue.

Spokesperson of the Nigerian Governors, Bello Barkindo, said all the 36 governors’ met recently in anticipation of the release of the second tranche of the money already approved by vice-president.

“The governors met in anticipation of the release of the other half of the Paris-London Club refund expected to hit the states’ accounts within the month.

“We all agreed that a substantial amount from the next tranche of the Paris-London refunds be used in the settlement of workers salary and pension arrears.”

The president, Trade Union Congress, TUC, Bobboi Kaigama, and his Nigeria Labour Congress, NLC, counterpart, Ayuba Wabba, have asked the government to enlist the assistance of anti-graft agencies, the Economic and Financial Crimes Commission, EFCC, and the Independent Corrupt Practices and Other Related Offences Commission, ICPC, to probe the use of the first tranche as well as monitor the disbursement of the second.

“We have already called for the probe by ICPC and EFCC those states not only for the first tranche, but subsequent tranches,” Mr. Kaigama said.

“We are working with the Federal Government, which directed that the fund be used for the payment of arrears of workers’ salaries and pensions before anything else.”



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  • GbemigaO

    30% to be stolen ! Well done Ms Adeosun.You have played into their hands yet

    • El Patron

      She has no choice. You cannot confiscate a states’ money. If you attempt it, they will just go to court and win you anyway. Nigeria is hopeless

      • emmanuel

        Shhhhhhhhhh, it does not take rocket science to secure a template for all states and local goverment pay schedule and account numbers which are currently in uses with relevant BVN to do a pay-direct thing. This is an embarassing situation than needs intelligent and determined solution.
        Even the self-styled Alfa in Osun state (self-styled religious governor) was the first to divert his share of the money when the Labour Union raised alarm.
        So it behoves on the FG to take an unusual stance to right the previous wrong. Unfortunately, Kemi has even asked that they steal only thirty percent.

        • Manuel Tobby

          Then you are the real Mumu here and not Adeosun, so you want FG to pay the State and LG workers directly using their BVN?

          Soon same you will be screaming restructuring of the country and that the FG is too powerful!!!!
          Tribal Bigotry has destroyed your ability to think through issues again!

          • emmanuel

            Did you read me? Unusual problem require unusual solution. Why has the EFCC their attack dog not followed all the monies to their final destinations if she is sincere?.
            Coward, you change moniker by the minute. Are you not the real mumu?
            Im calling on the FG to trash Kemi and replace her with a better Yorobber person, except ypur people are satisfied with her mumuish performance.

  • FreeNigeria

    The workers are owed salaries because the worthless politicians are buying mansions overseas. Also, instead of government to create enabling environments for business to thrive and hire, they’ve become employers of labor they can’t sustain.

  • Ifeanyi

    You gave them bailouts, they didn’t pay salaries. They collected FAAC allocations, they didn’t pay salaries. They received first tranche of Paris Club refunds, they are still owing salaries. Madam, they will collect this second tranche and still owe salaries. If you couldn’t get them to pay salaries with bailouts which was specifically designed and given for that purpose, I don’t see how you can get them to pay salaries from Paris club refunds -their earnings which was overcharged. Forget it.

    • damilare balogun

      Will d money intended to b given to them clears all the areas? Be objective in ur thinking guy

  • El Patron

    Tomorrow these same governors will be talking about restructuring, especially that idi0t called Fayose. With all the money he is getting from Abuja he cant pay salaries or do any meaningful project in his state. If Nigeria is restructured and Ekiti no longer receives oil money nor be die the state don enter? I keep telling everybody that cares to listen, this restructuring is just political talk. Every party promises to restructure until they enter Aso Rock then story changes.

    • damilare balogun

      Fayose is loved by him pple so he claimed. Ekiti pple will av to bear their cross bcos dats wat they choose to b. Nobody to b blame for ekiti retiredness.

  • George

    Bad mouthed minister of finance=This iiiiidiottttt called minister have no power over state governors nor has power to dictates to them what they do with state money.

    Salaries must be paid but she has no right to dictate as she is claiming. Useless Yorober lady

    • damilare balogun

      Must u abuse her. Can any of ur family stands her achievement. U Dnt just av to open ur mouth n talk anyao to pple. Must u talk?

      • emmanuel

        You have always shown your level of illiteracy Julius. This is your typical post “Can any of your family equal her/his achievements”
        That a woman get a job than is bigger than her probably because she warmed some crass id*ots bed an achievement? So all the asewos who have cars and houses and Evans are all achievers.
        The meaning of Kemi Adeosun is disaster in the dictionary and only in your world are such persons called achiever. Anyway, we know by your standard that anybody who is seen in the Television is a celebrity.

  • James Ojapa

    Madam, you were made minister by Gov amosun. You must do the governors bidding. Spare us all these tales my moonlight. This time just credit the governors personal accounts directly. You dont have to go through the trouble of going through thw governor forum account.

    • damilare balogun

      Oga u go schl at all? Must u comment rubbish here

      • James Ojapa

        You wey go school. Counter my argument with valid points. Is this why you banned me from sahara?

  • Du Covenant

    Most of our governors cannot be trusted for we all know how they emerged. These governors think they are Gods and everyone must dance around them. My take is for the FG to come up with a way of this money going straight to the workers via bank transfers, why was the BVN and electronic payment system put in place?, this should be one of the benefits otherwise these governors will certainly do what they do best.

  • Concerno Nigeriana


    Payment of salary is what Acting President Yemi Osinbajo fails but only
    struggles to achieve, after two years in office. This is the extent Nigeria has
    fallen – where after eight (8) trillion Naira was allocated to and spent by the
    Buhari/Osinbajo government, there’s nothing to show for it in justification, thus
    suggesting a measure of downright theft going on inside government offices in
    Nigeria today.

    Today, there are 28 million un-employed youths just roaming
    purposelessly inside Nigeria – a staggering figure equal to the entire
    population of Ghana; a neighbouring West African country, according to
    a latest official bulletin issued by the federal Nigerian Bureau of Statistics.
    The jobless figure today is more than half the whole population of Nigeria
    at independence on October 1st, 1960.

    • Dawood

      I agree with you. Mrs. Adeosun should be ashamed of herself, and should go hide somewhere. Tougher? That she didn’t know that all these governors are pot-belied thieves? What was she thinking the first time they showed up at Aso Rock asking for these monies? Mrs. Adeosun is complicit in depriving hard-working Nigerians their salaries. These thieving governors are diverting working salaries to building mansions in western capitals and buying expensive cars for their prostitute girlfriends and all Mrs. Adeosun is doing about it is promising to be tougher. How are you going to be tougher Madam? I’ll demand that they keep 70% for salaries. And this time you believe they’ll listen to you? If this wOman is serious, she change the process and pay the workers directly, FIRST, before giving these thieving governors any kobo.

      • Ike


        The whole population of Nigeria in 1960 was 45.5 million, therefore, if we now have
        28 million un-employed youths inside Nigeria, it means that 62.2% of the whole
        population of Nigeria on October 1st 1960 is now jobless today. Buhari government
        wants to give a plate of rice to primary school pupils – as free school meal, which it
        has even failed to do till today – after sacking the parents of the famished pupils.

        But what sort of APC illiteracy is this inside Nigeria’s useless government today?
        You sack the parents; and leave the siblings jobless, only to offer a plate of rice to
        the last born in the family? Poverty will continue to deepen in Nigeria by so doing,
        if APC party wants the kids of 28 million jobless folks to live by a plate of rice alone.

      • Mr. Immanueli


        IF CARE IS NOT TAKEN internecine conflicts will erupt like rash all across Nigeria under the present conditions of un-affordable cost of living. Already, a major town in Lagos state – Ikorodu – is in bloodbath,
        with human heads cut off on daily basis as if in sport by angry youths formed into gangs and killing for fun. The states and federal government are fastly losing control over the country, by stealing and not thinking
        for the overall populace who now take matters into their hands; to rampage and kill at leisure for survival.

        • Mr. Immanueli

          “The dreaded ritual cult, Badoo, yesterday struck again, attacking a family of five
          at Olopomeji, Odogunyan area of Ikorodu in Lagos State, and killing three
          persons.Two children between the ages of two and four are presently in critical
          conditions at the Ikorodu General Hospital after the suspected Badoo attacker
          left them for dead at around 3a.m. on Wednesday Another eyewitness account
          said David, his wife, Pricilla, and their son Moses were hacked to death with a
          grinding stone, while another son, Sunday, was seriously injured with their
          two-year-old boy still missing. Yesterday’s attack was the third within a month
          as the bodies of a couple were discovered last weekend at Ekundayo area
          of Idi-oro, Ogijo, in Ikorodu, three days after they were last seen by neighbours

          ………….The Guardian

          (June 29th, 2017)

    • emmanuel

      You failed to mention over thirty million of previously employed family heads who have lost their jobs and are all now converted to UBER Cab drivers.
      Nigeria has descended to an unprecedented level of poverty in the world. Unfortunately, most of these young family heads aided the APC fraudsters and their black operations agents who staged managed the exit of the last government to pull Nigerian down in the social media then.
      They are now deing in silence, as the hospitals smile to the bank on the account of high turnover from stress induced health challenges.
      Nobody wants to push this government to be responsible. Nigeria for over a year now has received Oil earnings in excess of $20.00 per barrel on the budget bench mark, yet the woes are unending.
      They hid $286 million for 2019 election with the NIA Boss who stole $43 million from it; when they were yet to spend Nigeria out of depression. Osinbade has swept that report under the carpet since then to shield their evil from the world – Magu did shame them to Nigerians who have left that issue behind
      Osinbajo is not a Pastor by any means but an enemy of Nigeria pretending t be a good man, but indeed a gangster who suppresses truth!

  • emmanuel

    Kemi Adeosun should stop talking to Nigerians. This woman is unintelligent, sadistic, naive and unqualified for the office she holds.
    In her demonic standards, she refused to release the funds appropriated in 2016 budget for the Second Niger Bridge, but paid in full for the Lagos/Ibadan Expressway project, which was meant to be a PPP thing and has been surreptitiously converted to a wholly FG funded project.
    Kemi knows nothing about economy or finance and she only pretend in that office doing only administrative job of sharing money, for an economy that is dead. Unfortunately, there are no intelligent or persons determined to further the interest of Nigeria in their government other than those who want power and has no value for it – changi inglorious politicians
    She should stop berating us with the Paris-funds refunds, which we already know is a bribe to the Governors to enable them engage in outright stealing – for those who cared to replace their electoral investments of 2015, against spending monies to get Nigeria out of depression.
    We also know that the new tranche is in preparation for 2018 campaign ahead of the 2019 elections. Of course there are no more PDP Governors; since they have all become technical APC members to stave off harassment from Buharis hogwash EFCC and DSS.
    As for TUC and NLC now Northern hegemonic establishment of inept Presidency, i pity them, because they now serve the interest of a Government bent on erasing previous developmental goal against their future of their children for primordial benefits.
    The developed world is watching you in excitement as you further their desire to keep African down using Nigeria as a mirror.
    Shame on you!
    I recommend to Kemi to go buy the secondary school economics textbook; to read so she can help herself out of the shame and utter disgrace she has brought to her highly revered office

    • Manuel Tobby

      I can see you are enraged!!!!
      If I may ask you, where was your rage for 6 years when your heroes such as the Genius Okonjo iweala, GEJ, Anyim Pius, Emefiele, Okogu of budget office controlled Nigeria’s treasury and budget for years AND STILL DIDN’T DO YOUR BELOVED 2ND NIGER BRIGDE?????

      now you just woken up from your stupor to kill Adeosun and APC!

      • emmanuel

        Second Niger Bridge is a Nigerian Project not for the Igbos please.
        Nigeria is hetting leaner while Kemi is adding flesh everywhere by doing nothing. See her photo here.
        In typical Nigeria packaging; especially with ladies and their swagg, when things are tough and rough, they abandon their swagg and enter pidgin English.
        As for Kemi, she is adding weight by the day, because she is busy doing-nothing.

  • emmanuel

    Sixty days after Osibanjo’s $43 million NIA/Oke’s cash fraud probe report became ready, he has swept it under the carpet

  • DanJ

    Apparently, the less hope they have about this entity, the more they loot! Our pessimistic outlook appears to be a motivational force for looting!!

    Kidnapping, Inadequate Power, Decayed Educational System, Dilapidated infrastructure, Inadequate Primary Health Care facilities, Inadequate Portable water, Poor Transportation Network, Under Equipped Health care facilities, BH, Badoo, Intra and Inter Community differences (e.g IPOB vs Government and Elders of SE), Justice system being questioned due to delays, inflation, absent leadership (Suntai Cabal could continue to operate because something similar was happening at the center so nobody to call them to order) may be providing all the motivation and justification needed by the looters to continue in their despicable act.

    Maybe, when our money finishes and we hit rock bottom, patriots will step forward. By then, the wheel of leadership will be abandoned by those who hitherto struggle to assume leadership roles for self enrichment.

    Let the money finish so we may emerge stronger like a phoenix from it’s ashes.

    The kind of stories we read everyday can cause depression. It seems there is something that our leaders see when they get there which may be above our pay grade, because we seem to know all the solution till the moment we are clothed with power.

    When they step down, instead of writing books about the mistakes they made while in office so aspiring leaders can read and learn (i.e. if they even read at all these days), they write books filled with self praise and no lessons whatsoever.