The deduction from Osun was part of the N32 billion deducted by the federal government from states as repayment for bailout funds and other loans extended to the affected states and the federal government.
At the end of the Federation Accounts Allocation Committee (FAAC) meeting for April 2016, the state went home empty handed. It still, however, owes the federal government about N361 million which will be deducted from subsequent months.
Apart from Osun, other states that had huge deductions by the federal government include Bayelsa, Cross River, and Ogun.
Bayelsa had N3.207 billion, 66.7 per cent, deducted from N4.812 billion allocated to it in April.
Other deductions included Cross River State, N1.405 billion (63.46 per cent); Ogun, N1.185 billion (57.2 percent); Plateau, N1.248 billion (56.52 per cent); and Ekiti, N1.067 billion (55.33 per cent).
Seven states – Akwa Ibom, Anambra, Jigawa, Kogi, Lagos, Rivers, and Yobe – along with the Federal Capital Territory did not have deductions, as they did not collect the bail-out funds used for the deduction.
Apart from bail-out funds, which took about N3.078 billion from the affected states, loans the states are now repaying to the federal government include debts on Asset Management Corporation of Nigeria (AMCON) loans, commercial agricultural credit scheme, bond issuance programme, obligations to contractors, and deduction from excess crude account.
Other deductions include refund/payment arrears of derivation, foreign loans, special intervention/flood management projects, the national FADAMA project and reconstruction of commercial bank loans into FGN bonds.