The Nigerian government has released the summary of the deduction for the liquidation of judgment debts on behalf of the 36 state governments and the local government for the period of 10 years.
From the document obtained by SaharaReporters, the repayment plan for the $500million Paris club fund showed that a total of N162.1 billion was allocated to the 36 states and Abuja to be paid within a period of 10 years.
According to the document, the exchange rate was pegged at N387.89 to a dollar as N162,139, 316,330.40 was divided by $418,000,000.
The details showed that N10,435,840.75 will be deducted from each of the 36 states for a month, and in a year, they will each pay N125,230,089. After 10 years, each state will have paid N1,252,300,890.
Meanwhile, the repayment plan varied as regards the deduction from the Local Government Areas. For Kano State with about 44 local government areas, a deduction of N6,654,373,783 will be made within the period of 10 years (120 months).
The 34 local government areas in Katsina State will repay N5,142,016,105 within the period of 10 years.
From Oyo State which has 33 local government areas, a deduction of N4,990,780,338 will be made within the period of ten years.
The 31 local government areas in Akwa Ibom State will repay N4,688,308,802 for the period of ten years.
Osun which has 30 local government areas will repay N4,537,073,034 within the period of ten years while Borno with 27 LGAs will repay N4,083,365,731.
The 27 local government areas in Imo state will repay N4,083,365,731 which is also equivalent to the deductions to be made from the 27 LGAs in Jigawa State.
Niger State with 25 LGAs will repay N3, 780, 894, 195 within a period of ten years and Delta state will pay back N3, 780, 894, 195.
While Nigeria reached a final agreement for debt relief with the Paris Club in October 2005, some states had already been overcharged.
The funds were released to state governments as part of the wider efforts to stimulate the economy and were specifically designed to support states in meeting salary and other obligations, thereby alleviating the challenges faced by workers.
The releases were conditional upon a minimum of 50 per cent being applied to the payment of workers’ salaries and pensions.
Meanwhile, there have been contentions over the payment of the sum of $418million to consultants regarding the Paris Club refund.
A Federal High Court in Abuja had on Friday stopped the federal government from deducting $418million from the bank accounts of the 36 states of the federation.
On Monday, the Nigeria Governors’ Forum (NGF), in a statement, accused the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, of their alleged involvement in the controversial $418million request.
The NGF’s Head of Media and Public Affairs, Abdulrazaque Bello-Barkindo said the decision of the AGF to throw his weight behind the consultants who had been battling desperately to grab $418 million from the accounts of states and local governments “raises questions of propriety and the spirit of justice.”