Paris Club Refund: States To Receive N649 Bn As Final Trench


The Federal Government is set to release the sum of N649.43 billion as the final refund of Paris club to state governments.


Zainab Ahmed, the Minister of Finance disclosed this on Thursday in Abuja while briefing Journalist on the progress of her ministry.


Prominent personalities during the briefing were; Hameed Ali, the Comptroller-General of Customs, Patience Oniha, Managing Director, Asset Management Cooperation of Nigeria and the Director-General of the Security and Exchange Commission.


The Minister revealed the said money had already been confirmed by the ministry to be the outstanding balance to be refunded to the state governments, and the ministry is working towards that.


In her statement, “For the final phase of the Paris Club debts refunds, the total sum of N649.434bn was verified by the ministry as the outstanding balance to be refunded to the state governments.


According to her, the Central Bank of Nigeria has made some payment in March 2019 of N691.56 billion. The difference in the CBN payment is attributed to exchange rate at the time of making the payment. Although some states still have outstanding balances, however, it will be refunded to them soon.


The Minister revealed that, between June 20, 2018, when the 2018 budget was signed into law by President Muhammadu Buhari and May 14, 2019, the Federal Government had incurred a total of N2.079tn to finance the capital components of the 2018 budget.


She explained that the constitution provided for spending the current year’s budget on a provisional basis for salaries and recurrent expenditure, adding that the capital budget for 2018 was still operating until the new budget becomes effective.