The Federal Government has deducted N32 billion from allocations of states from the Federation Account in the month of April 2016 for different loans they incurred.
In a report by the Economic Confidential, the economic intelligence magazine, it appears Osun State is worse hit by the development and ranks number one as its allocation for the month of April 2016 totaling N2.030 billion was wiped away by a deduction of N2.391 billion, leaving a deficit of N361 million to be paid in the subsequent month by the state.
This represents a whopping 117.8 per cent of the total allocation due the state from the Federation Account.
This means that Osun State had nothing to take home for the month of April, 2016 as other means of survival had to be adopted to keep the ship sailing for the people of the State.
Osun State is followed in the mind boggling deduction conundrum by Bayelsa State, with a total deduction of N3.207 billion out of an allocation of N4.812 billion for the month of April 2016, representing 66.66 per cent of the total allocation.
Others are: Cross River State with a total deduction of N1.405 billion; Ogun State, N1.185 billion; Plateau State, N1.248 billion; and Ekiti State, with N1.067 billion, all representing 63.46 per cent, 57.20 per cent, 56.52 per cent and 55.33 per cent respectively within the period under review.
From the investigation, not less than N3.078 billion of the total amount was deducted for bailout funds granted the states by the Federal Government.
At least eight states had no deductions on bailout funds for the month of April 2016.
The states – Akwa Ibom, Anambra, Jigawa, Kogi, Lagos, Rivers, Yobe and the Federal Capital Territory – did not collect the bailout funds from the Federal Government or appropriate time for the deduction have not fallen due and are yet to commence.
Meanwhile, from the schedule of deductions obtained and computed by the Economic Confidential, the deductions from the states also include debts on AMCON loan, Commercial Agricultural Credit Scheme, Bond Issuance Programme, Contractual obligation and deduction from Excess Crude account.
Others are: Refund/Payment arrears of derivation, foreign loans, special intervention/flood management project, the national FADAMA project and the reconstruction of commercial bank loans into Federal Government of Nigeria bonds apart from bailout funds.