The Federal Government has barred states owing salaries from accessing the $2.69bn Paris Club refund.
This was disclosed by the Director of Information, Federal Ministry of Finance, Hassan Dodo in a statement on Tuesday.
Dodo said States must clear the backlog of salaries and other related staff arrears before they would be able to access the remaining 2.69 billion dollars Paris Club Refund.
He said the Federal Government would commence phased payments of the refund to the states once the condition and several others were met.
“The DMO led the reconciliation process under the supervision of the Federal Ministry of Finance. The final approval of 2.69 billion dollars is subject to some conditions.
“Salary and staff related arrears must be paid as a priority. Also, the commitment to the commencement of the repayment of Budget Support Loans granted in 2016 must be made by all States.
“Furthermore, they must clear amounts due to the Presidential Fertiliser Initiative and make a commitment to clear matching grants from UBEC.
“This is in cases where some states have available funds which could be used to improve primary education and learning outcomes,” Dodo said in a statement.
