Nigerian 36 states have received a total of 740 billion naira from a refund on overcharged deductions on Paris club debt this year, data from the central bank has shown.
The total refund represents about 10 percent of this year’s federal budget, according to Central bank of Nigeria's (CBN) deputy governor, Adebayo Adelabu in his note to the last Monetary Policy Committee (MPC) meeting.
Nigeria federal government has proposed a total of 7.44 trillion naira for this year with an inbuilt deficit of around 2.36 trillion naira.
The refund is in respect of over-deductions on Paris Club, London Club Loans and Multilateral debts between 1995-2002.
Nigeria had reached a final agreement for debt relief with the Paris Club in October 2005, some States had already been overcharged.
The OPEC member country projected the budget to bring it out of its worst recession, which was brought on by low crude prices, which have slashed government revenues, weakened the naira and caused chronic dollar shortages.
The 2017 budget is based on an assumed oil price this year of $44.50 a barrel, while global benchmark Brent crude is currently trading above $50. It also entails debt service for the foreign borrowing of 175.9 billion naira and domestic borrowing of 1.488 trillion naira.
Worried about the increasing inability of many states to pay worker’s salaries, the federal government entered into an agreement with governors of the states to refund certain amount over-charged them on the Paris Club debt to enable them pay outstanding wages.
However, many of the states are still owing their workers unpaid salaries for upward of six to ten months in spite of the huge amounted refunded since the beginning of the year.
The refund is in respect of over-deductions on Paris Club, London Club Loans and Multilateral debts between 1995-2002.
Nigeria had reached a final agreement for debt relief with the Paris Club in October 2005, some States had already been overcharged.
The OPEC member country projected the budget to bring it out of its worst recession, which was brought on by low crude prices, which have slashed government revenues, weakened the naira and caused chronic dollar shortages.
The 2017 budget is based on an assumed oil price this year of $44.50 a barrel, while global benchmark Brent crude is currently trading above $50. It also entails debt service for the foreign borrowing of 175.9 billion naira and domestic borrowing of 1.488 trillion naira.
Worried about the increasing inability of many states to pay worker’s salaries, the federal government entered into an agreement with governors of the states to refund certain amount over-charged them on the Paris Club debt to enable them pay outstanding wages.
However, many of the states are still owing their workers unpaid salaries for upward of six to ten months in spite of the huge amounted refunded since the beginning of the year.
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