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$418m deductions suspended as FG, states meet for FAAC today

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Zainab Ahmed, Minister of Finance

There were strong indications on Wednesday that the federal and state governments had agreed to the suspension of the deduction of $418m Paris Club refunds from states and local governments’ accounts pending the determination of court cases on the issue.

Following the agreement, which was reached between states’ officials and the Federal Ministry of Finance, the Federation Account Allocation Committee meeting, which ended in a deadlock last Friday, would now hold today (Thursday).

It was, however, not clear if the decision to suspend the deductions would affect the October revenue allocation, but it was gathered that the Federal Government had already issued promissory notes on the consultants’ pay.

The Ekiti State Commissioner for Finance, Akin Oyebode, confirmed in an interview with The PUNCH that the issue of deductions had been resolved.

The commissioner, who did not give details of the resolution, also confirmed that the FAAC would either meet on Wednesday or Thursday (today).

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He also reiterated the demand of the states for the separation of the Office of the Accountant-General of the Federation from the Office of the Accountant-General of the Federal Government.

Last Friday’ FAAC meeting ended in a deadlock as a disagreement arose between the federal and state governments when the committee was informed by the Ministry of Finance that the deductions for the $418m from the local governments’ allocation had commenced in order to pay the consultants for the work they did on the Paris Club refund.

The country had in 2006 paid $12bn to get a $18bn debt write-off by the Paris Club of international creditors.

States and local governments that did not owe the Paris Club later asked for a refund when they realised that the payment was made directly from the revenue accruing to the entire federation.

There were reports that some consultants, who claimed a percentage of the refunds as payment for services they said they rendered to the states and local governments, went to court to demand their pay.

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The Federal Government had negotiated an out-of-court settlement with the contractors and $418m was agreed on as the judgment debt.

But the Nigeria Governors’ Forum, which opposed the payment, approached the court to stop the implementation of the controversial agreement.

The Chairman of the Forum of Commissioners of Finance and Benue State Commissioner for Finance, David Olofu, had said on Monday that the sharing of the October revenue by the three tiers of government was suspended last Friday because of the deductions.

A top member of FAAC, who confided in The PUNCH on Wednesday, said, “Deductions will not be done until the conclusion of the court cases, but I don’t know what will happen to the October allocation on which deductions had been made.”

Oyebode also told one of our correspondents on Wednesday that the issue of deductions, which led to the delay in the monthly allocation to states from the Federation Account, had been resolved.

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The Ekiti finance commissioner said, “The issue has been resolved. We (Federation Account Allocation Committee) expect to meet today (Wednesday) to adopt the communiqué. I believe that the meeting will hold today or latest tomorrow (Thursday).”

Oyebode, who declined comments on the content of the communiqué, said the allocation for October would be released.

He stated, “It (allocation) will be released. It was not withheld. The issue had to do with deductions, which were made on the accounts of the states and local governments. Our position, which has been clearly stated by the Chairman of the Forum of Finance Commissioners, is that we believe that those deductions are being challenged and should not even start unless the claims are verified.

“Also, if we are a federation and we are equal partners, we don’t believe that we should just come to a meeting and see deductions on our statement that were not previously discussed and agreed on. That is the principle of federation that we are upholding and defending. It is not an argument per se. It is just that it is a principle that the federating units should be upheld at all times.”

He added that an issue of concern was the need to have separate accountants-general for the federation and the Federal Government, noting, “The Office of the Accountant-General of the Federation is not the same as the Office of the Accountant-General of the Federal Government.

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“We have argued that the offices should be separated. There should be an accountant-general for the Federal Government and an accountant-general for the federation, and not the present situation where the accountant-general of the federation is only responsible to the Minister of Finance.”

The commissioner gave an assurance that Ekiti State would pay October salaries to workers as scheduled, saying, “We will pay salaries. What is important is paying salaries.”

FG has seen reason why deductions can’t start now – Delta commissioner
The Delta State Commissioner for Finance, Mr Fidelis Tilije, stated in an interview with The PUNCH on Wednesday that the Federal Government had agreed that the deductions could not start now.

He said, “The Federal Government has seen reason why deductions cannot start now. For crying out loud, there are court processes that are ongoing. Why don’t we wait till the court processes are concluded before talking about deductions?

“The Federal Government has issued promissory notes. The judgment they are talking about is a high court judgment.”

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Tilije allayed fears over the non-payment of October salaries by Delta State, saying, “We will manage, but we hope that whatever problem we have will be resolved this week.

“We are supposed to have a conclusive discussion today (Wednesday), but we are still waiting for the Federal Ministry of Finance to determine the time of the meeting. If we don’t hold the meeting today (Wednesday), we will hopefully hold it tomorrow (Thursday).”

The Osun State Commissioner for Finance, Bola Oyebamiji, told one of our correspondents that the state would not borrow to pay salaries.

He said the government would strategise and find a way round the issue to ensure that workers would not suffer.

“We are going to think outside the box as we normally do. We are not going to borrow, but we are going to find a way round the situation. We will strategise and see what we can do to ensure that our people do not suffer,” Oyebamiji stated.

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Efforts made to get a response from the spokesperson for the Office of the Accountant-General of the Federation, Henshaw Ogubike, were unsuccessful as calls were not taken and messages delivered were not replied.

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Nigerian Visa Applicants Now Required to Submit Applications Directly at Embassy, Consulates

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The Nigeria Immigration Service (NIS) has announced that travellers in the United States seeking Nigerian visas must now submit their applications directly at Nigerian diplomatic missions following the termination of its contract with a third-party visa processing company.

The new directive, which takes immediate effect, ends the role previously played by Online Integrated Solutions (OIS Services), which had been responsible for receiving and processing Nigerian visa applications through its centres across the United States.

In a statement issued on Thursday, the NIS Public Relations Officer, Akinsola Akinlabi, said visa applicants are now required to submit their documents directly at the Embassy of Nigeria in Washington, D.C., or at the Nigerian Consulates in New York and Atlanta until further notice.

The immigration service did not state the reason for ending its partnership with OIS Services.

However, Akinlabi assured applicants that adequate measures have been put in place at the embassy and consulates to ensure a smooth transition. He added that visa submission, processing and approval would continue without disruption.

He also urged prospective travellers to monitor the official communication channels of the Nigeria Immigration Service and Nigerian diplomatic missions in the United States for updates on visa application procedures.

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Don urges S/African Govt. to take active responsibility of protecting foreigners

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A Professor of Economics and Governance, Prof. Chiwuike Uba, has called on South African Government to take active responsibility of protecting foreigner and desist from ‘compromising inaction’.

Uba, Chairman of the ACUF Initiative for Policy and Governance, made the call on Thursday in Enugu in a statement he titled: “South Africa Is Playing with Fire, and Its Elites Are Holding the Match”.

He said that the lack of intentional action against the individuals and groups perpetrate the xenophobic attacks, who are non-state actors, raises serious questions under international law.

The don noted that “protection of non-nationals is a clear obligation, not a discretionary act.”

According to him, persistent failure to uphold this responsibility undermines both legal commitments and diplomatic credibility.

Uba said that the implications of the development extend far beyond South Africa, adding that it would have economically, politically and diplomatically consequences both to the country and Africa in general.

He noted that economically, the country is not just another market.

“It is a continental anchor. Its financial systems, industrial base, and regional linkages make it central to African growth.

“Prolonged instability would ripple outward, constraining trade, deterring investment, and weakening regional integration,” he said.

On the Political aspect, he said that South Africa had long been seen as a model of democratic transition and constitutionalism.

“If that model begins to fracture, it sends a powerful signal across the continent.

“It emboldens those who argue that institutional democracy cannot deliver, and it weakens reformist voices elsewhere,” he said.

Uba said that diplomatically, xenophobic violence is not a domestic issue when it targets foreign nationals.

He said, “It is an international concern that tests regional solidarity and diplomatic patience.

“Each episode forces other African governments to respond, balancing domestic outrage with the need to preserve bilateral relations.”

The don noted that over time, the balance in the country would becomes harder to maintain as non-state actors would be emboldened to perpetrate other unlawful acts as they view the government as weak or inactive.

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OYC Warns ICPC Chairman Against Alleged Bias in Uche Nnaji Case

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The Apex sociocultural youth organization of the Igbo race worldwide, Ohanaeze Youth Council (OYC), has described the current arrest made by the Independent Corrupt Practice and Other Related Offence (ICPC) against former Minister of Science and Technology and the 2027 People Democratic Party (PDP) governorship candidate for Enugu State, Hon. Uche Nnaji, regarding his certificate, as a deliberate political witch-hunt orchestrated by the Governor of Enugu State, His Excellency Gov. Peter Mbah.

In a press address in Enugu on Wednesday, 8th July 2026, Comrade Igboayaka O. Igboayaka, National President of Ohanaeze Youth Council (OYC), called on Dr. Musa Adamu Aliyu (SAN), Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), to maintain the commission’s ethical standards, threatening to seek his removal if evidence confirms the alleged bias of ICPC in favor of Governor Peter Mbah against Hon. Uche Nnaji regarding the 2027 Guber election.

*The Ohanaeze Youth Council (OYC) revealed that the fight against Hon. Uche Nnaji is a battle for the Enugu Governorship and the “Lions Building Seat” in 2027, and dismissed the certificate forgery allegations against Uche Nnaji as a political distraction and blackmail.*

The surreptitious entry into the court by the Independent Corrupt Practices and Other Related Offences Commission to obtain a court order detaining Hon Uche Nnaji is a teleguided executive overreach attributed to Gov Peter Mbah apparently aimed at silencing Hon Uche Nnaji, which is highly censurable.

The Council stated that “A court of competent jurisdiction is presently handling the unsubstantiated certificate forgery case, and the University of Nigeria Nsukka and Hon Uche Nnaji have opted for an out-of-court settlement, following recent findings of misinformation.

Therefore, Dr. Musa Adamu Aliyu (SAN), Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), should maintain a neutral stance regarding the Enugu State Governorship battle to preserve his reputation built through his legal career and public service, and avoid being perceived as succumbing to Governor Peter Mbah’s alleged attempts to utilize executive power to blackmail and witch-hunt Hon. Uche Nnaji.

The Ohanaeze Youth Council(OYC) warned Governor Peter Mbah to concentrate on fulfilling his unfulfilled campaign promises to Enugu State rather than chasing Hon Uche Nnaji through the Independent Corrupt Practices and Other Related Offences Commission (ICPC)

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Governor Mbah’s Compassionate Gesture Brings Relief to Enugu Fire Victims

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Families displaced by the recent fire outbreak in the Asata area of Enugu have received immediate relief from the Enugu State Government following the intervention of Governor Peter Mbah, who directed that palliative support be provided to ease their suffering.
Chairman of the Enugu State Emergency Management Agency (ESEMA), Chinasa Mbah, disclosed that the agency promptly delivered the relief materials in compliance with the governor’s directive.
“We have given them some palliative as directed by His Excellency. Our report has equally gone in, and we await further instructions,” Mbah said.
She explained that ESEMA has completed its assessment of the incident and submitted its recommendations to the state government, adding that additional assistance for the affected families will depend on the governor’s approval of the agency’s report.
The swift response underscores Governor Mbah’s commitment to standing with citizens in times of distress. The victims, whose homes and belongings were destroyed in the fire that gutted two flats in a two-storey building on Church Road, Asata, are expected to receive further support as the government considers ESEMA’s recommendations.

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Questions Persist As Almajiri Commissions Attempts to Defend Projects Outside Its Mandate

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The National Commission for Almajiri and Out-of-School Children’s Education (NCAOOSCE) has defended the inclusion of projects outside its statutory mandate in the 2026 budget, insisting they are National Assembly constituency projects assigned to the commission for implementation.
However, the explanation has done little to quell public scrutiny, with critics questioning why a commission established to tackle the Almajiri system and out-of-school children—challenges largely concentrated in Northern Nigeria—is overseeing projects reportedly located in parts of the South-West.
The controversy has also been fuelled by concerns over the scale of the allocations, as the value of the disputed constituency projects is said to far exceed the funds earmarked for the commission’s core education programmes.
Responding to the criticism in a statement issued on Monday, the commission’s Special Assistant on Media and Communications, Nura Muhammad, said the projects were included in the 2026 Appropriation Act under the long-standing practice of assigning constituency projects to Ministries, Departments and Agencies (MDAs) for execution.
According to the commission, once such projects are approved in the federal budget and allocated to an agency, they become part of its implementation responsibilities.
“As part of a duly enacted federal budget, every project assigned to the commission forms part of its implementation responsibilities and will be executed in strict compliance with extant laws, financial regulations and due procurement processes,” the statement said.
NCAOOSCE maintained that the inclusion of the projects does not alter its statutory mandate, stressing that it remains focused on addressing the Almajiri system and reducing the number of out-of-school children across Nigeria.
The commission cited its achievements, including the profiling of more than 700,000 out-of-school children, the establishment of 119 learning centres, ward-to-ward advocacy campaigns, and the implementation of the National Policy on Almajiri Education, as evidence of its commitment to its core responsibilities.
This version attributes the concerns to critics and public scrutiny rather than stating them as established facts.

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