FG clears over 80% of debts owed by embassies, settles staff salaries, rents

The federal government says it has cleared more than 80 percent of debts owed by Nigerian embassies and consulates across the world, including salary arrears of locally recruited staff and outstanding rent obligations.

The ministry of foreign affairs said the intervention followed years of budget shortfalls that crippled the smooth operations of diplomatic and consular missions.

Kimiebi Imomotimi Ebienfa, spokesperson of the ministry, said embassies have begun to stabilise with the latest disbursement, easing concerns about their ability to function effectively.

He added that the measures reflect President Bola Tinubu’s commitment to the welfare of diplomatic staff and to restoring Nigeria’s global diplomatic standing, despite economic challenges at home.

According to the ministry, one of the remedial steps was the release of special intervention funds to cushion the hardship faced by missions. A committee was also set up to verify the debt profile of each mission.

“Based on responses from Missions and documentary evidence provided, more than 80 per cent of the available funds have been cleared for payments, with priority given to service providers, salaries of locally recruited staff and arrears of claims due to officers, respectively,” the ministry said.

Ebienfa added that government has also moved to address the impact of foreign exchange differentials on missions’ allocations in the 2024 fiscal year.

“The Ministry has also engaged the Office of the Accountant-General of the Federation in obtaining refunds for the shortfall in Missions’ allocations in the 2024 fiscal year due to foreign exchange differentials associated with the new monetary policy and the harmonisation of exchange rates,” he said.

The ministry confirmed that President Tinubu approved the settlement of the shortfall, with the first tranche already remitted to some missions. It said second semester allocations have also been approved.

As part of a long-term plan, the ministry disclosed that it is developing a sustainable financial model for funding missions abroad, in line with wider fiscal reforms of the federal government.

It added that discussions are ongoing with the federal ministry of finance and the Central Bank of Nigeria to facilitate the prompt release of personnel and overhead allocations to all missions, starting this week, to clear outstanding allowances.

Acknowledging the strain on staff, the ministry commended the resilience of diplomats who, it said, have continued to serve with patriotism under difficult circumstances.

It also expressed gratitude to host governments, service providers and international partners for their patience during the funding challenges.