FG To Suspend Paris Club Debt Deductions From States’ Accounts

The Nigeria Governors’ Forum (NGF) said Paris Club debt deductions from states’ accounts have been suspended by the Federal Government.

NGF chairman and governor of Sokoto state, Aminu Tambuwal, said the states will also be refunded monies previously deducted as agreed by the federal government. 

According to a communique released, Tambuwal told the governors during their 7th emergency meeting in Abuja on Tuesday. 

There has been disagreement between the federal government and the governors over the Paris Club debt refund. The government has been deducting them from the states’ accounts, a move the governors are against. 

The governors are against the $418 million consultancy fees, which the federal government and the Debt Management Office (DMO) said the Nigerian government owed to consultants involved in the Paris club debt, resulting in legal action. 

The communiqué reads: “Members were briefed by the chairman of the forum that the minister of finance has granted the request of the forum to immediately stop further deductions from the accounts of states to meet local government councils London Paris Club obligations and the monies so far deducted be paid back to the states.”

Meanwhile, Tambuwal will exit his position as chairman of NGF, with the governor of Kwara state, AbdulRahman AbdulRazaq, selected to take over. 

“On the leadership of the forum, the governor of Kwara state, AbdulRahman AbdulRazaq, emerged as the new chairman of the Nigeria Governors’ Forum through a consensus, and the governor of Oyo state Seyi Makinde, is now the vice-chairman. 

“Members expressed satisfaction with the success of the just-concluded induction for new and returning governors that took place between May 14 and 19, 2023.”