There were strong indications on Monday that state governors would soon meet with the President Muhammadu Buhari, over the Federal Government’s decision to debit local government accounts.
It was gathered that the governors decided to meet the President after Friday’s Federation Account Allocation Committee meeting ended in a deadlock following the states’ opposition to the commencement of deduction of $418m from the local governments’ accounts to pay private consultants for the Paris Club refund.
It was learnt that commissioners of finance had briefed the governors and that the states would take up the matter with the President last week.
A top official of the Federal Ministry of Finance, Budget and National Planning said, “The governors’ meeting with the President is expected to hold this week, because of the urgency of the matter. Without the allocation, the states cannot pay salaries.”
The states were irked at Friday’s last meeting when they were informed by the Permanent Secretary, Federal Ministry of Finance that deductions from local governments’ allocations had started in order to pay the Paris Club consultants.
The Federal Government had in 2006 paid $12bn to get an $18bn debt write-off by the Paris Club of international creditors.