Payment of salaries by about 33 states of the federation is uncertain as the decision of the federal government to debit local government accounts in commencement of a payment of $418 million (N172 billion) to private consultants on Paris Cub refund has pitched states and local governments against it (FG).
BudgIT, a civic group committed to government financial transparency, in its report, ‘State of States 2019’, said only three Nigerian state governments (Lagos, Rivers and Akwa Ibom) can finance their recurrent expenditure without allocation from the federal government.
There had been pressure from the Nigeria Governors Forum (NGF) and the general public to stop the suspicious payments to the consultants.
However, in a dramatic twist, less than a month after a directive by President Muhammadu Buhari,, the Ministry of Finance, Budget and National Planning has commenced deductions to pay the claimants.
The permanent secretary, Federal Ministry of Finance, told the Federation Account Allocation Committee (FAAC) meeting on Friday that it has commenced the deductions to pay the consultants.
This information has irked the states which then refused to consider the revenue for the month of October 2021 until the FG comes clean with the deductions.