CHAIRMAN of Nigerian Governors Forum and Governor of Ekiti State, Kayode Fayemi, has said that the Federal Government cannot commence its plans to make deductions from the federation account for payment of consultants for the Paris Club Refund.
Governors have rejected their September allocation until the disagreement is resolved and pundits are of the opinion that unless there is a quick resolution of the row, many states may not be able to pay salary this month.
Fayemi said, “We are dealing with the issue. We would find a resolution to it.
“As far as states are concerned, they do not accept that funds belonging to Federation Account could just be arbitrarily deducted without the input of the states, and that’s why we are insisting that until this is clarified, we would rather leave the money in the pool until we have all agreed on the direction.”
The federal government plans to begin deduction from the federation account for payment of $418 million private consultants who took part in the Paris Club Refund.
This move by the Federal Government is projected to affect the recurrent expenditure of at least 33 states and they may not be able to pay the salaries of their workers.
