Paris Club Refund: Kaduna pays N17bn pensions, N4bn death benefits

By AbdulRaheem Aodu Kaduna–

The Kaduna state government said it has paid more than N17 billion in pensions to civil service retirees, and N4.11 billion in gratuity and death benefits to 1,654 retired workers from the Paris Club refund.

Kaduna state Commissioner for Finance, Malam Suleiman Abdu Kwari, while explaining how the Paris Club refunds were spent told journalists that workers in the public service have accumulated N6.

87 billion in the contributory pension scheme since January 2017.

He said Kaduna state has no salary arrears, averring that those who believe that the Paris Club refunds are meant solely for salaries and pensions are mistaken.

Kwaru said government’s belief that investments in the future of young people and in the development of the state are very important, ensured that part of the refunds were spent on improving education, healthcare and infrastructural development especially land administration, road and water across the state.

Th e commissioner said that, civil servants in the state usually get credit alerts of their salaries around the 25th of every month, adding that the state will continue to honour its commitments to workers and ensure that the best qualified teachers and civil servants remaining in the service will be paid.

Kwari said: “I wish to address and update you today on the payment of pensions and issues around the Paris Club refunds to our state.

Malam Nasir el-Rufai was the first state governor to disclose receipt of some Paris Club refunds.

At the signing ceremony of the 2017 budget in December 2016, the Governor announced that the government would be approaching the Kaduna State House of Assembly for a supplementary budget to capture the refunds.

A supplementary budget was subsequently passed by the Assembly.

“The refund is money due to states whose accounts were over-deducted when Nigeria was settling its debt obligations to the Paris and London clubs of creditors in 2005.

When President Muhammadu Buhari decided on making the refunds, it was within a climate where several states were too stressed to meet their salary and pension obligations.

The Minister of Finance agreed with state governments to use at least 25% of the amounts to settle such arrears, but that did not mean that the refunds were meant solely for salary and pensions.

Leave a Reply