Governors and the Paris/London Club refunds

THE Federal Government, on Monday, released details of the second tranche of the refunds remitted to the 36 states of the federation from the “over-deductions on the Paris Club, London Club Loans and Multilateral Debts on the Accounts of States and Local Governments (1995-2002).”  According to the Minister of Finance, Kemi Adeosun, approval for the release of N243.8 billion was given by Acting President Yemi Osinbajo on May 4. Consequently, states like Akwa Ibom, Bayelsa, Delta, Kano and Rivers received N10 billion each, while others received lower sums. A statement by the Finance Ministry indicated that the releases were made on the understanding that a minimum of 75 per cent would be applied to the payment of workers’ salaries and pensions. The statement said that the ministry was reviewing the impact of the releases on the level of arrears owed by the various state governments.

Happily, there are indications that many of the state governments have been deploying the funds as agreed. For instance, the Kwara State government announced that it had given N1 billion to local government councils in the state from its N5.1 billion share of Paris Club refund. In a similar vein, states like Benue, Bayelsa  and Osun, among others, gave breakdowns on how the funds were utilised. And while acknowledging the receipt of N4.7 billion from the said fund on Monday, the Ekiti State government announced Governor Ayodele Fayose’s plan to meet with teachers, local government workers and Nigeria Labour Congress (NLC) members on how it would be spent.

However, the story of the disbursement of the funds has not all been rosy. In many states, the ruling parties have been engaged in a ding-dong with members of the opposition parties who have been accusing the state governments either of diverting the funds or giving misleading information on them. In any case, the Economic and Financial Crimes Commission (EFCC) has been engaged in altercations with some state governments over alleged misappropriation of the funds, with the governors accusing the commission of blackmail. Indeed, this week, the governors reportedly held a closed-door meeting at the Federal Capital Territory (FCT), Abuja, to discuss the matters arising from the disbursement of the funds.

Ordinarily, it would have been entirely unnecessary to advise the 36 state governors to keep their word regarding the disbursement of the funds which are outside their normal allocations from the Federation Account. Experience has however taught Nigerians not to automatically expect fidelity from the political leadership. This explains the clamour by  retired civil servants in some states that the Federal Government should strictly monitor the disbursement and utilisation of the refunds in the states. Yet in a distressed economy like the country is presently faced with, it would be unfortunate, if not suicidal, to continue to compound the woes of workers and pensioners through non-payment of their wages and entitlements, particularly given the fact that the majority of the states are owing the workers many months of salary arrears.

Without doubt, paying the workers their entitlements would have positive effects on the economy, as artisans and traders, for instance, would benefit greatly from the gesture. Currently, most of the private schools in the country are faced with dire financial challenges as a result of the inability of parents to pay their children’s school fees. However, once the workers are paid their salaries, they are duty-bound to offset their children’s school fees and relieve the burden of the school proprietors. In the same vein, workers who have been living from hand to mouth would have some respite. But it is important not to overlook the fact that the funds are also meant for some projects being undertaken in the various states.

We urge the governors to utilise the funds judiciously bearing in mind the pains and agonies of the larger populace arising from economic recession. Now, more than ever, the electorate need projects that will touch their lives positively, otherwise they will simply plug into the divisive tendencies in the country and undermine its corporate existence.