Facts about Zamfara State FGs infrastructure refund

The present Zamfara State Government through its finance commissioner is claiming that funds paid by the Federal Government for Federal roads executed by the administration of Dr Abdulaziz Abubakar Yari to the tune of N60 billion were squandered. The commissioner in his interview granted to newsmen has laid bare his lack of understanding of Government/public […]

The present Zamfara State Government through its finance commissioner is claiming that funds paid by the Federal Government for Federal roads executed by the administration of Dr Abdulaziz Abubakar Yari to the tune of N60 billion were squandered.

The commissioner in his interview granted to newsmen has laid bare his lack of understanding of Government/public finance in a fast paced digital world in trying to blame H.E Yari for their 16 months failure and ineptitude so far.

In a typical fashion, the commissioner contradicted himself where he said , in correspondence of letters between Zamfara State and Federal Ministry of works and housing they were informed that the funds were refunded but could not find when, how and for what purpose the funds were used for.

He then contradicted himself by further saying the funds were lodged in Zamfara State Governments account domiciled with a commercial bank.

Below are facts about the refunds and how it was disbursed.

The Senate and House of the Representatives on Tuesday, 24th July 2018 considered and approved the Promissory Note and bond issuance to settle inherited local debts and contractual obligations on refund to State Governments for projects executed on behalf of the Federal Government in the sum of N 488,743526,206.77 to 21 States.

The payments by Promissory notes was necessitated due to lack of funds for the cash payment at that time, which is a mode of settlement of debt for payment later which in this case was for 2 and 3 years maturity.

The State Governors agreed that the Governors Forum should on behalf of the States negotiate the discounting of the Promissory notes by financial institutions.

40% of the First tranche of the 9 States FGN Sovereign Promissory notes were purchased by UBA at 19% Zamfara State inclusive.

While the 60% second tranche of the 18 States FGN Sovereign Promissory notes were purchased by Central Bank of Nigeria at 9% in order to give the States more value.

Total Amount Expended on Federal Roads by Zamfara State Government between 2012-2018 is Sixty (60) Billion Naira
Amount approved for Refund was N 37.4billion Naira as Promissory notes by the FGN

First tranche of 40% approved for disbursement N 14.96 billion at 2 years maturity

19% Discounted amount for the Promissory notes of N 14.96 billion= N 10.43billion Paid to UBA JAAC account.

Second tranche of 60% approved for disbursement N 22.44 billion at 3 years maturity

9% Discounted amount for the Promissory notes of N 22.44bn =N 17.32billion Paid to UBA FAAC account.

Imran Rufa’i writes from Gusau