In a significant development, states across Nigeria are poised to receive substantial financial relief as the Federal Government has consented to reimburse them with a whopping N1 trillion sourced from the Excess Crude Account (ECA).

This generous refund represents approximately 25.6 percent of the total N3.9 trillion previously withdrawn from the ECA by the federal government, unbeknownst to the states. While the refund is undoubtedly a positive development, it will not be disbursed in a lump sum.

Instead, the N1 trillion repayment will be distributed to the states in manageable tranches of either N50 billion or N100 billion on a monthly basis until the entire sum is entirely settled.

A high-ranking source within the Federal Ministry of Finance disclosed this vital information to The Nation newspaper, confirming that states had recently discovered the unauthorized withdrawals from the ECA and had promptly confronted the Federal Government regarding the issue.

The source further revealed that the government has, in response, agreed to disburse the N1 trillion refund, representing the rightful share owed to the states from the previously withdrawn N3.9 trillion. Notably, a portion of the Excess Crude Account withdrawals was directed towards offsetting some of the nation’s outstanding debts.

This development signifies a significant step towards addressing the financial concerns of the states and fostering greater financial stability and transparency within the Nigerian government’s fiscal management.

Stay tuned for further updates on this developing story as the refund process unfolds.