Governor of Ekiti State, Kayode Fayemi, says state governments will not accept arbitrary deductions of funds from the federation account for payment of consultants for the Paris Club Refund.
Fayemi, who is also the chairman of the Nigeria Governors’ Forum (NGF), said this on Tuesday while speaking with journalists on the sidelines of the 27th Nigerian Economic Summit (NES 27) in Abuja.
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.
Fayemi said state governments are currently dealing with the issue and will find a solution soon.
“As far as states are concerned. They do not accept that funds belonging to the federation account are deducted arbitrarily without their input,” Fayemi said.
“We are dealing with the issue. You will find the resolution to it.
“That’s why they (governors) have insisted until this is clarified, we will rather leave the money in the pool until we all agree.”
According to reports, last week’s Federation Account Allocation Committee (FAAC) meeting ended in a deadlock over opposition by the governors on the commencement of deduction of $418 million from the local governments’ accounts to pay private consultants for the Paris Club refund.
Consultants had claimed the amount as a percentage for the payment of services rendered to the states and local government councils.
But the amount did not go down well with the governors who requested a forensic audit over the claim made by consultants.
