FG stops deduction of $418m Paris Club debt from states’ accounts

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Abuja, May 24, 2023, The Federal Government has finally agreed to stop further deductions of the London/Paris Club debt obligations of state governments estimated at $418 million.

Aminu Tambuwal, the outgoing Chairman of Nigeria Governors Forum, disclosed this while briefing members at the forum’s meeting which ended on Tuesday, May 23, 2023.

The governors have been at loggerheads with the Federal Government over the deductions of the $418 million known as Paris Club Refunds from the accounts of states and local governments for payment to consultants.

Tambuwal said the finance minister also promised to ensure the refund of of earlier deductions from the states’ accounts.

The issue of Paris Club obligations and deductions was a major disagreement between the Federal Government and State Governments for some time.

The state governments had opposed the deductions from their accounts for payment to consultants, leading to a legal tussle between the Federal and state governments.

In March, a Federal High Court in Abuja dismissed an application by the attorney generals of the 36 states of the federation seeking an order to permanently restrain the Federal Government from deducting monies accruing to the state over the $418 million Paris Club refund. (GBN)

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