FG halts deductions from State accounts over Paris Club debt

The Federal Government of Nigeria has agreed to suspend further deductions from State Governments’ accounts to fulfil their London/Paris Club obligations for the benefit of Local Government Councils.

This decision was revealed by the immediate past Chairman of the Nigeria Governors Forum (NGF), Governor Aminu Tambuwal, during a briefing held at the forum’s meeting on Tuesday.

Governor Tambuwal further disclosed that the Minister of Finance has pledged to facilitate the reimbursement of previously deducted amounts.

The NGF meeting also saw changes in its leadership structure, as reported earlier by this newspaper.

Governor Abdulrahman Abdulrazaq of Kwara State has emerged as the new Chairman of the Nigeria Governors Forum. At the same time, Governor Seyi Makinde of Oyo State has been appointed Vice Chairman.

The communique reads: “Members were briefed by the Chairman of the forum that the Hon. 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.

“On the leadership of the forum, the Governor of Kwara State, Abdulrahman Abdulrazaq, emerged 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 14 and 19 of May, 2023. Members committed to sustained collaboration among the states through enhanced peer review, learning at the sub-national level and deepening the relationship with the Federal Government and other institutions.”