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Revealed: Buhari conceals details of Paris Club refunds despite promising transparency

Revealed: Buhari conceals details of Paris Club refunds despite promising transparency

- It was revealed that President Muhammadu Buhari has concealed details of Paris Club refunds despite promising transparency

- The concealment of the funds is, however, frustrating Nigerians keen about knowing how their governors spent the huge amount

- The Minister of Finance, Kemi Adeosun, was said to have blocked attempts by Nigerians, civil society and the media to obtain details of the payments, amid allegations of misuse by governors

Some months after paying N522.74 billion Paris Club loan refund to 36 states, the federal government has concealed details of the disbursements, frustrating Nigerians keen about knowing how their governors spent the huge amount.

Revealed: Buhari conceals details of Paris Club refunds despite promising transparency

President Muhammadu Buhari

Premium Times reports that for months, Finance Minister, Kemi Adeosun, and other senior officials blocked attempts by Nigerians, civil society and the media to obtain details of the payments, amid allegations of misuse by governors.

READ ALSO: Pay salary now! Buhari orders CBN, finance ministry to release Paris Club refunds to states immediately

In authorising the payments in November 2016, President Muhammadu Buhari advised the money be used in settling arrears of workers’ salaries, retirees’ pension and gratuities.

But it was gathered that few states applied the funds as advised.

The Economic and Financial Crimes Commission (EFCC), according to Premium Times has last week confirmed it was investigating suspected misuse of the funds, but did not give details.

But despite the government’s pledge to fight corruption by being more transparent, the Ministry of Finance, the Office of the Accountant General of the Federation, and the Debt Management Office, separately denied requests by Nigerians and groups to make those details open.

Secret sharing of $4 billion

Nigerians first knew of the refunds in November 2016 after the Chairman of the Senate Committee on Federal Capital Territory, Dino Melaye, accused the federal government of secretly sharing the money to states.

The lawmaker also accused the 36 states governors of attempts to conceal the payment from the public, especially civil servants.

But the finance minister, Mrs Adeosun, promptly dismissed the allegation as “absolutely incorrect”.

She said: “there was no such money to share.”

The minister did not provide further details, particularly regarding the accumulated refund of the debt service deductions in respect of the Paris Club, London Club and multilateral loans of the federal and state governments between 1995 and 2002.

Mrs Adeosun merely explained that states were overcharged during the 2005 Paris Club for debt relief under the Obasanjo administration.

Following verification and approval by President Buhari, the minister said only 14 states would share N153.01 billion in the first disbursement, but did not disclose the names of the affected states.

Only a few states like Kaduna and Plateau voluntarily admitted receiving payments.

Mrs Adeosun later explained that there was an agreement with states that at least 25 per cent of each state’s claim would be paid, subject to a cap of N14.5 billion, while balances due would be paid when the country’s financial situation improves.

In the end, N522.74 billion was paid to the states.

Revealed: Buhari conceals details of Paris Club refunds despite promising transparency

Kemi Adeosun

The minister later assured that appropriate personnel had been directed to get in touch with this newspaper with the needed details. No such personnel ever contacted this medium.

Buhari orders release of second tranche of payment

Amid allegations of fund diversion, and lack of transparency, President Buhari on Thursday, ordered the immediate release of the second tranche of the fund to the states to ease their financial difficulties.

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The Paris Club debt payment deal was sealed in October 2005. It involved the repayment of $12.3 billion, instead of $30.4 billion.

Out of the $30.4 billion, Nigeria was expected to pay only $6.3 billion (arrears & levelling up) and another $6billion (post cut-off date debt and debt buy-back), while the creditors agreed to cancel $18 billion, an overall debt reduction of about 60 per cent.

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