President Muhammadu Buhari has directed the Minister of Finance, Zainab Ahmed to halt plans on the deduction of $418 million from the federation account to settle consultants over Paris Club debt. This was discussed during the August 3rd Federal Executive Council (FEC) Meeting. The Nigeria Governors' Forum (NGF) last week had resisted attempts to begin the deduction plan. The governors, in a letter to the federal government, through the Secretary to the Government of the Federation (SGF), Boss Mustapha, argued that an attempt to restart the deduction process, which is being challenged in the courts and for which the Supreme Court has made a pronouncement, would be unconstitutional.
The letter, signed by the Chairman of the NGF and outgoing governor of Ekiti State, Kayode Fayemi, described the new move as an “attempt by the Attorney General of the Federation (AGF), Abubakar Malami, and the Minister of Finance (HMF) to circumvent the law and the recent judgment of the Supreme Court by surreptitiously securing the approval of the FEC to effect payment of the sum of $418 million to four contractors who allegedly executed contracts in respect of the Paris Club refunds to the states and local governments.”
In September 2021, the president suspended the controversial payment of $418 million to consultants despite initially approving the payment.
Citing sources privy to the details, the newspaper said Ahmed and Abubakar Malami tabled a memo asking the cabinet to approve the restart of the deductions from funds due to states from the federation account. Before Wednesday’s meeting, the governors were said to have separately written to all ministers explaining their position and seeking their intervention to stop the planned deduction being vigorously pushed by the ministers of justice and finance.
The report said that they were fiercely countered in quick succession by Babatunde Fashola, minister of works and housing; Festus Keyamo, minister of state for labor; Boss Mustapha, secretary to the government of the federation, and two other cabinet members.
The FEC members who spoke against the deduction were said to have told the meeting that it would be sub-judicial for any payment to be made to the contractors while cases are pending in courts. They also reportedly argued that it was insensitive of Ahmed and Malami to have tabled a proposal for the payment of controversial debts to contractors at a time the government is struggling to pay workers and fulfill its obligations to citizens.
The president has directed that all plans on deduction be put on hold until the courts make their final pronouncement.
