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Paris Club Refund: How States Fared (1)
Majority of the states across the federation, have utilised the second tranche of the Paris Club refund they received to clear the arrears of their serving and retired workers’ entitlements.
However, in most states where the arrears of salaries, pensions and gratuities have been paid, some civil servants and retirees, especially those in the council areas, are still being owed.
A survey by the News Agency of Nigeria (NAN) indicated that some of the workers and pensioners were owed salaries and pensions for periods ranging between two and 11 months.
The Federal Government in July released about N243.79 billion to the states as the second tranche of the refund, having earlier released N388.30 billion to them in December 2016.
The funds were released following protests by the states against over-deductions from their allocations for external debt services between 1995 and 2002.
The federal government had advised the state governments to use between 50 and 75 per cent of their shares of the refund to clear the arrears of salaries, pensions and gratuities they owed.
Reports indicate that 15 of the 22 (68 per cent) states surveyed so far, have utilised the money in settling the arrears of the entitlements while nine have not.
Those that paid are: Jigawa, Yobe and Adamawa in the North-East; Kwara in the North-Central; all states in the South-South except Cross River; Abia in the South-East; and all states in the South-West.
Bauchi, Gombe and Borno in the North-East; Cross River in the South-South; as well as Enugu, Anambra and Ebonyi in the South-East have yet to pay the arrears.
In Jigawa, for instance, Alhaji Suleiman Kiyawa, Executive Secretary, Jigawa State and Local Government Contributory Pension Scheme, said the State Government had cleared the arrears.
Kiyawa said the state government paid about N461.4 million as terminal benefits to 339 retirees in the state.
Malam Muhammad Ali, a staff of the state Ministry for Local Government and Community Development, said no retired or serving worker in the state was being owed any entitlement.
Malam Abubakar Musa, a retired civil servant in the state, said that each time a civil servant retired, he/she collected the entitlements without delay.
In Yobe, Alhaji Baba Malam-Wali, the Secretary to the State Government (SSG), said the state had been paying salaries of workers as and at when due and would continue to do so.
The SSG spoke through his Press Secretary, Shuaibu Abdullahi, in Damaturu.
However, payment of the entitlements of the council workers in the state had been delayed due to an internal conflict among members of the state Local Government Retiree Screening Committee.
Alhaji Kachallah Goni, the state Chairman of Nigeria Union of Pensioners (NUP), commended the state government for the prompt payment and urged it to intervene in the matter to pave way for hitch-free settlement of the arrears.
On its part, the Borno Government said it approved N6 billion for the clearing of the outstanding retired workers’ gratuities and pensions in the state.
It was however reported however, that the concerned workers and retirees have yet to receive the payments.
Mr Yakubu Bukar, Head of Service and Alhaji Usman Zanna, Commissioner for Local Government and Chieftaincy Affairs respectively, said in a statement in Maidugiri that a committee had been constituted to handle it.
In Gombe, Mr Haruna Kamara, Chairman, Nigeria Labour Congress (NLC), said the State Government had not settled the arrears of gratuities of some retired civil servants.
He said that government did not inform the NLC in the state about the release of the second tranche, but that the organised labour only read of it on the internet.
“The truth of the matter is that nobody from the government of Gombe state consulted us about the fund and how they are going to use it,” he said.
Malam Abubakar Umar, a pensioner in the state, appealed to the state government to pay the outstanding gratuities.
All efforts to get the Secretary to the State Government (SSG), Mr James Phisagi, speak on the matter proved abortive.
In Yola, Gov. Muhamadu Bindow of Adamawa, acknowledged receipt of N6.11 billion as the state’s share of the refund.
“So far, we have settled six months inherited outstanding workers’ salaries.
It remains only one month salary arrears which I have directed the Commissioner of Finance to pay,” he said.
However, some primary school teachers, primary healthcare workers and pensioners complained of non- payment of their outstanding salaries and pensions.
Speaking to newsmen on condition of anonymity, some primary healthcare workers said they were owed three months salaries.
“As I am talking with you, we have not received even the July salary let alone the three months arrears. We are suffering,” said one of them.
Checks at the state Pension Board indicated outstanding arrears of N11 billion owed to the state government pensioners and N8 billion owed to the local government pensioners.
The Bauchi State Chairman of NUP, Alhaji Abu Gar, said the state government owed the retirees N26 billion as arrears of gratuities.
Gar who lamented what he called ‘poor handling of issues relating to pensioners’ in the state, said 43 members of the union had died because of hardship.
The Permanent Secretary, Bauchi State Ministry of Finance, Alhaji Abdullahi Dori, confirmed the state government’s receipt of its share of the second tranche of the refund.
In Ilorin, North-Central, Dr Muideen Akorede, Senior Special Assistant on Media to Gov. Abdulfatah Ahmed of Kwara, said N2 billion of the N5.1billion received, was released to the 16 local government councils.
He also said that the state government released N312million to the state-owned tertiary institutions for the payment of salary arrears.
A pensioner, Mallam Ibrahim Salmanu, however, said most local government retirees in the state were owed up to 11 months arrears of pension.
According to him, payment of gratuities to state pensioners had been stopped since March 2014.
All the states in the South-West said they utilised the fund in settling the salary and pension arrears they owed their serving and retired workers.
In Ibadan, Mr Bimbo Adekanmbi, the Oyo Commissioner for Finance and Budget, said the state spent over 60 percent of the first and second tranches of the refund on clearing the arrears.
Adekanmbi said the N7.9 billion it received as the second tranche was used to pay the arrears of April and May salaries as well as pensions.
Mr Waheed Olojede, state NLC Chairman, confirmed the payment, but Mr Bayo Titola-Sodo, President, Nigeria Union of Local Government (NULGE), Oyo State chapter, said council workers were still owed salary arrears.
In Abeokuta, the Ogun Commissioner for Finance, Mr Wale Osinowo, said government had committed N4.5 billion to the payment of arrears of cooperative deductions owed workers in the state.
He said the payment represented 79 per cent of the N5.7 billion received.
The NLC Chairman in Ogun, Akeem Ambali, however, said that the 12 months arrears of cooperative and check-off due deductions made this year had not been paid.
In Osogbo, the Osun Commissioner for Information and Strategy, Mr Adelani Baderinwa, said the state government spent N5.10 billion of the N6.31 billion it received to clear the arrears.
Baderinwa said the payment schedule was recommended by the State Revenue Allocation Committee chaired by Mr Hassan Sunmonu.
“The only outstanding payment owed pensioners here is the gratuity and this is because some who retired in 2011 and 2012 choose not to participate in contributory pension scheme,’’ he said.
The state Chairman of the NLC, Mr Jacob Adekomi, however, claimed that some workers and pensioners were still being owed.
The labour leader said that civil servants in the state had been receiving modulated salaries since July 2015.
“A modulated salary scheme means workers on grade one to seven receiving 100 per cent of their salaries, and workers on grade level 8 to 12 being paid 75 percent of theirs, for instance,” he said.
In Akure, the Ondo State Government said that it received N6.38 billion as the second tranche of the Paris Club refund.
Olusegun Ajiboye, Chief Press Secretary to Gov. Oluwarotimi Akeredolu, said 32.68 percent of the amount was allocated to the local government councils while the state government got 67.32 per cent.
“That is why Ondo state government used 75 per cent of its share to settle the salary and pension arrears,” Ajiboye said.
But Mrs Bosede Daramola, the NLC Chairman in the state, described fractional payment template adopted in the state as a breach of contract, saying it was unacceptable to the workers.
The Ekiti Government, on its part, said it received N4.7 billion as the second tranche of the refund.
The Commissioner for Finance, Chief Toyin Ojo, told NAN in Ado Ekiti that local government councils in the state got N1.8billion of the N4.7 billion.
He disclosed that the state government sought for additional fund in order to pay one month salary and leave bonus to all workers.
The NLC Chairman, Mr Ade Adesanmi and his TUC counterpart, Mr Odunayo Adesoye, said they were involved in the disbursement of the refund.
His NUT and NULGE counterparts, Mr Segun Olugbesan and Mr Bunmi Ajimoko respectively, also confirmed their involvement.
To be continued.
Obeta writes for News Agency of Nigeria.
Ejike Obeta
President Bola Tinubu yesterday signed into law four tax reform bills aimed at transforming Nigeria’s fiscal and revenue framework.
The four bills include: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
They were passed by the National Assembly after months of consultations with various interest groups and stakeholders.
The ceremony took place at the Presidential Villa, yesterday.
The ceremony was witnessed by the leadership of the National Assembly and some legislators, governors, ministers, and aides of the President.
The presidency had earlier stated that the laws would transform tax administration in the country, increase revenue generation, improve the business environment, and give a boost to domestic and foreign investments.
“When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments,” Special Adviser to the President on Media, Bayo Onanuga said on Wednesday.
Before the signing of the four bills, President Tinubu had earlier yesterday, said the tax reform bills will reset Nigeria’s economic trajectory and simplify its complex fiscal landscape.
Announcing the development via his official X handle, yesterday, the President declared, “In a few hours, I will sign four landmark tax reform bills into law, ushering in a bold new era of economic governance in our country.”
Tinubu made a call to investors and citizens alike, saying, “Let the world know that Nigeria is open for business, and this time, everyone has a fair shot.”
He described the bills as not just technical adjustments but a direct intervention to ease burdens on struggling Nigerians.
“These reforms go beyond streamlining tax codes. They deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet,” Tinubu wrote.
According to the President, “They will unify our fragmented tax system, eliminate wasteful duplications, cut red tape, restore investor confidence, and entrench transparency and coordination at every level.”
He added that the long-standing burden of Nigeria’s tax structure had unfairly weighed down the vulnerable while enabling inefficiency.
The tax reforms, first introduced in October 2024, were part of Tinubu’s post-subsidy-removal recovery plan, aimed at expanding revenue without stifling productivity.
However, the bills faced turbulence at the National Assembly and amongst some state governors who rejected its passing in 2024.
At the NASS, the bills sparked heated debate, particularly around the revenue-sharing structure, which governors from the North opposed.
They warned that a shift toward derivation-based allocations, especially with VAT, could tilt fiscal balance in favour of southern states with stronger consumption bases.
After prolonged dialogue, the VAT rate remained at 7.5 per cent, and a new exemption was introduced to shield minimum wage earners from personal income tax.
By May 2025, the National Assembly passed the harmonised versions with broad support, driven in part by pressure from economic stakeholders and international observers who welcomed the clarity and efficiency the reforms promised.
In his tweet, Tinubu stressed that this is just the beginning of Nigeria’s tax evolution.
“We are laying the foundation for a tax regime that is fair, transparent, and fit for a modern, ambitious Nigeria.
“A tax regime that rewards enterprise, protects the vulnerable, and mobilises revenue without punishing productivity,” he stated.
He further acknowledged the contributions of the Presidential Fiscal Policy and Tax Reform Committee, the National Assembly, and Nigeria’s subnational governments.
The President added, “We are not just signing tax bills but rewriting the social contract.
“We are not there yet, but we are firmly on the road.”
The Senate has issued a 10-day ultimatum to the Nigerian National Petroleum Company Limited (NNPCL) over its failure to appear before the Senate Committee on Public Accounts probing alleged financial discrepancies amounting to over ?210 trillion in its audited reports from 2017 to 2023.
Despite being summoned, no officials or external auditors from NNPCL showed up yesterday.
However, representatives from the representatives of the Economic and Financial Crimes Commission, Independent Corrupt Practices and Other Related Offences Commission and Department of State Services were present.
Angered by the NNPCL’s absence, the committee, yesterday, issued a 10-day ultimatum, demanding the company’s top executives to appear before the panel by July 10 or face constitutional sanctions.
A letter from NNPCL’s Chief Financial Officer, Dapo Segun, dated June 25, was read at the session.
It cited an ongoing management retreat and requested a two-month extension to prepare necessary documents and responses.
The letter partly read, “Having carefully reviewed your request, we hereby request your kind consideration to reschedule the engagement for a period of two months from now to enable us to collate the requested information and documentation.
“Furthermore, members of the Board and the senior management team of NNPC Limited are currently out of the office for a retreat, which makes it difficult to attend the rescheduled session on Thursday, 26th June, 2025.
“While appreciating the opportunity provided and the importance of this engagement, we reassure you of our commitment to the success of this exercise. Please accept the assurances of our highest regards.”
But lawmakers rejected the request.
The Committee Chairman, Senator Aliyu Wadada, said NNPCL was not expected to submit documents, but rather provide verbal responses to 11 key questions previously sent.
“For an institution like NNPCL to ask for two months to respond to questions from its own audited records is unacceptable,” Wadada stated.
“If they fail to show up by July 10, we will invoke our constitutional powers. The Nigerian people deserve answers,” he warned.
Other lawmakers echoed similar frustrations.
Senator Abdul Ningi (Bauchi Central) insisted that NNPCL’s Group CEO, Bayo Ojulari, must personally lead the delegation at the next hearing.
The Tide reports that Ojulari took over from Mele Kyari on April 2, 2025.
Senator Onyekachi Nwebonyi (Ebonyi North) said the two-month request suggested the company had no answers, but the committee would still grant a fair hearing by reconvening on July 10.
Senator Victor Umeh (Anambra Central) warned the NNPCL against undermining the Senate, saying, “If they fail to appear again, Nigerians will know the Senate is not a toothless bulldog.”
Last week, the Senate panel grilled Segun and other top executives over what they described as “mind-boggling” irregularities in NNPCL’s financial statements.
The Senate flagged ?103 trillion in accrued expenses, including ?600 billion in retention fees, legal, and auditing costs—without supporting documentation.
Also questioned was another ?103 trillion listed under receivables. Just before the hearing, NNPCL submitted a revised report contradicting the previously published figures, raising more concerns.
The committee has demanded detailed answers to 11 specific queries and warned that failure to comply could trigger legislative consequences.
The National Association of Nigerian Travel Agencies (NANTA) said over 17 million Nigerians travelled out between 2023 and 2024.
This is as the association announced that it would be organising a maiden edition of Eastern Travel Market 2025 in Uyo, Akwa Ibom State capital from 27th to 30th August, 2025.
Vice Chairman of NANTA, Eastern Zone, Hope Ehiogie, disclosed this during a news briefing in Port Harcourt.
Ehiogie explained that the event aims to bring together over 1,000 travel professionals to discuss the future of the industry in the nation and give visibility to airlines, hospitality firms, hospitals and institutions in the South-South and South-East, tagged Eastern Zone.
He stated that the 17 million number marks a significant increase in overseas travel and tours.
According to him, “Nigerian travel industry has seen significant growth, with 17 million people traveling out of the country in 2023”.
Ehiogie further said the potential of tourism and travel would bring in over $12 million into the nation’s economy by 2026, saying it would be a major spike in the sector, as 2024 recorded about $4 million.
“The potential of tourism and travel is that it can generate about $12 million for the nation’s economy by 2026. Last year it was $4 million.
“In the area of travels, over 17 million Nigerians traveled out of the country two years ago for different purposes. This included, health, religious purposes, visit, education and others,” Ehiogie said.
While highlighting the potential of Nigeria’s tourism, he said the hospitality industry in Nigeria has come of age, saying it is now second to none.
The Vice Chairman of NANTA, Eastern Zone further said, “We are not creating an enabling environment for business to thrive. We need to support the industry and provide the necessary infrastructure for growth.”
He said the country has a lot of tourism potential, especially as the government is now showing interest in and supporting the sector.
Ehiogie emphasized that NANTA has been working to support the industry with initiatives such as training schools and platforms for airlines and hotels to sell their products.
He added, “We now have about four to five training schools in the region, and within two years, the first set of students will graduate. We are helping airlines sell tickets and hotels sell their rooms.”
Also speaking, former Chairman of the Board of Trustees of NANTA, Stephen Isokariari of Dial Travels, called for more support from the industry.
Isokariari stated, “We need to work together to grow the industry and contribute to the nation’s Gross Domestic Product.
“With the right support and infrastructure, the Nigerian travel industry has the potential to make a significant contribution to the nation’s economy.”
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