The Minister of Finance, Kemi Adeosun has said President Muhammadu Buhari decided to release the second tranche of London-Paris Club loan refunds to states because of unpaid workers.
Adeosun was quoted to have said this in a statement issued by her Special Assistant on Media, Festus Akanbi.
Adeosun said the Federal Government has complied with all rules in the disbursement of the Paris club refunds.
Adeosun said her ministry will soon undertake independent monitoring of compliance with the terms and conditions of funds released.
The statement said: “The Minister of Finance has deemed it necessary to address the issue of Paris Club Refunds and wishes to assure the public that the Federal Government has consistently complied with all extant rules and regulations in the disbursement of the Paris Club refunds to state governments.
“The Federal Government’s disbursement process is transparent and targeted at the attainment of specific economic objectives. The inability of some sub-national governments to meet salary and other obligations was considered inconsonant with the Federal Government’s economic stimulus programme. Claims with regard to over deductions had been made to the Federal Government, consistently since 2005.
“The Debt Management Office (DMO) initially requested for a period of 22 months to complete the reconciliation and facilitate disbursement.
“However, President Muhammadu Buhari, considering the plight of salary earners and pensioners and the need to stimulate the economy, directed that the exercise be completed within 12 months.”