BEVERLY HILLS, August 22, (THEWILL) – After appropriate deductions by the federal government, the Osun State government received nothing from the federation account in April 2016 as its allocation for the month totaling N2.030bn was wiped away by a deduction of N2.391bn leaving a deficit of N361 million to be paid in the subsequent month by the state.
This represents a whopping 117.8 percent of the total allocation due the state from the federation account, and was part of the N32bn deducted by the federal government from states as repayment for bailout funds and other loans extended to the affected states and the federal government.
The federal government deducted a total sum of N32bn from allocations of states from the Federation Account in the month of April 2016 for different loans they incurred.
Osun State is followed in the mind boggling deduction from source by Bayelsa state with a total deduction of N3.207bn out of an allocation of N4.812bn for the month of April 2016, representing 66.66 percent of the total allocation.
Other states, aside Osun and Bayelsa, which had huge deductions by the federal government include: Cross River state with a total deduction of N1.405 billion, Ogun state, N1.185bn, Plateau State, N1.248bn and Ekiti State with N1.067 bn all representing 63.46 percent, 57.20 percent, 56.52 percent and 55.33 percent respectively within the period under review.
Seven states – Akwa Ibom, Anambra, Jigawa, Kogi, Lagos, Rivers, and Yobe – along with the Federal Capital Territory did not have deductions, as they did not collect the bail-out funds used for the deduction.
Apart from bail-out funds, which took about N3.078bn from the affected states, loans the states are now repaying to the federal government include debts on Asset Management Corporation of Nigeria, AMCON, loans, commercial agricultural credit scheme, bond issuance programme, obligations to contractors, and deduction from excess crude account.
Other deductions include refund/payment arrears of derivation, foreign loans, special intervention/flood management projects, the national FADAMA project and reconstruction of commercial bank loans into FGN bonds.
