The government of Osun State did not receive any money from the federation account in April 2016 due to deductions by the federal government.

A report by PREMIUM TIMES said that the deduction 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.

According to the report, Osun state’s April allocation from the federation account totaled N2.03 billion, but the sum was insufficient to offset the state’s total debt of about N2.391 billion.

The state still owes the federal government N361 million which will be deducted from subsequent months.

PREMIUM TIMES also reported that some other states saw their monthly share from the Federation account hugely reduced as a result of the deductions

Bayelsa State, for instance, had N3.207 billion deducted from the N4.812 billion allocated to it in April. The sum represents 66.7 percent of the State’s allocation.

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.

It was reported that 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.