Kwara cabinet okays proposal to offset debt with pending FG’s Excess Crude Accounts’ deductions

The Kwara State Executive Council has given the go-ahead for the state government to use its portion of the federal government’s unauthorized withdrawals from excess crude accounts between 2009 and 2015 to offset its local debt stock.

The Nigerian Governors’ Forum is recommending that each state convert its remaining deductions to the amount of its federal debt, resulting in a reduction or elimination of the state’s debt load.

In a memo delivered to the executive council on Monday, Commissioner of Finance Mrs. Olasumbo Florence Oyeyemi urged the council to authorize the federal government to pay the outstanding balance of 60% due to the state from the refunds on the unauthorized debits in the ECA, Petroleum Profit Tax and Royalties Account in order to settle and cover the state government’s domestic debt to it.

According to the memo, the Federal Ministry of Finance, Budget, and National Planning would credit or remit any remaining debits to the state government’s account, and “where the 60% cannot cover all of the state government’s domestic debt to the Federal Government, the Federal Ministry of Finance will continue the deduction directly from the FAAC,” percentage of state government as being done before

The House of Assembly would receive the council’s approval and give its legislative approval.

The council has also given the go-ahead for the Special Agroprocessing Zone (SAPZ), a project funded by the Islamic Development Bank that will increase food security, generate thousands of jobs, advance infrastructure development, and lessen the ongoing conflicts between farmers and herders.

The council also approved the continuance of KwaraLEARN, a project that, according to the governor, has given the government the tools it needs to improve basic education and regain control of the industry by providing real-time information about students, teachers, and their performance.

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