The statement, however, failed to mention controversies surrounding rumours that it recently made additional but discriminatory release of funds to Osun State Government where governorship election is holding next weekend.
A statement from Director of Information at the Ministry, Hassan Dodo recalled that the issue of Paris Club loan over-deduction had been a long-standing dispute between the Federal Government and the State Governments and dates back to 1995 to 2002.
“In response to the dispute, President Muhammadu Buhari directed that the claims of over-deduction should be formally and individually reconciled by the Debt Management Office (DMO). This reconciliation commenced in November 2016.
“As an interim measure to alleviate the financial challenges of the States during the 2016 recession, the President had approved that fifty per cent (50%) of the amounts claimed by States be paid to enable the States clear salary and pension arrears.”
Dodo said the money was released between December 1, 2016, and September 29, 2017.
“This refund was part of the Government’s fiscal stimulus to ensure the financial health of Sub-National Governments.
“The DMO led the reconciliation process under the supervision of the Federal Ministry of Finance.”
According to him, the final approval of US$2.689 billion was subject to the conditions that: salary and staff related arrears must be paid as a priority;
commitment to the commencement of the repayment of Budget Support Loans granted in 2016, to be made by all States; clearing of amounts due to the Presidential Fertiliser Initiative, and that commitment to clear matching grants from the Universal Basic Education Commission (UBEC) where some States have available funds which could be used to improve primary education and learning outcomes.
The statement concluded that “payment of the approved amount is to be made in phased tranches to the States.”
and then