FG Seeks Reps Approval Of N269.44bn To Clear Debts

The Federal Government has requested the House of Representatives to approve the establishment and expansion of its Promissory Note Programme to settle outstanding and verified liabilities, totalling N269.44 billion.

This was contained in a letter signed by the Secretary to the Government of the Federation (SGF), Senator George Akume, on behalf of President Bola Tinubu, and addressed to Speaker Abbas Tajudeen, who read it at plenary on Tuesday.

The SGF explained that the request arose from the need to address the outstanding obligations identified for the various categories of creditors, as detailed in the accompanying schedule and supporting documentation.

According to him, the liabilities comprised obligations arising from outstanding contractual, project-related, and other verified financial commitments of the government, with an aggregate verified amount of N269,446,402,822.56.

“Following a comprehensive review of the outstanding obligations by the relevant Ministries, Departments and Agencies and in furtherance of the Federal Government’s commitment to the orderly settlement of legitimate obligations, His Excellency, Mr President, has considered and approved the proposal for the establishment and expansion of the Promissory Note Programme to provide an appropriate mechanism for the settlement of the liabilities.

‘The proposed Programme is intended to provide a structured, transparent and fiscally responsible framework for settling the outstanding obligations, while ensuring that only duly verified and validated claims are admitted for settlement. The implementation will be undertaken in accordance with applicable laws, extant financial regulations and established procedures for public debt management,” the letter read in part.

Akume stated that the proposal is also intended to mitigate the continued accumulation of interest, penalties and other financial costs associated with the outstanding liabilities, while providing relief to affected creditors and strengthening confidence in the Federal Government’s commitment to honouring legitimate contractual and other obligations.

“It is pertinent to note that the Federal Government’s Promissory Note Programme has previously been utilised as an instrument for the settlement of inherited local debts and contractual obligations.

“The establishment of the earlier programme followed Federal Executive Council approval and was subsequently subjected to National Assembly approval, consistent with the applicable fiscal and public debt management framework.

“In view of the foregoing and pursuant to the approval granted by His Excellency, Mr President, I am directed to respectfully request the National Assembly to consider and grant the necessary legislative approval for: -the establishment and expansion of the Federal Government of Nigeria Promissory Note Programme

“The issuance of Promissory Notes in an aggregate amount of Two Hundred and Sixty-Nine Billion, Four Hundred and Forty-Six Million, Four Hundred and Two Thousand, Eight Hundred and Twenty-Two Naira, Fifty-Six Kobo (N263,446,402,822.56), or such amount as may be approved by the National Assembly, for the settlement of the verified outstanding liabilities contained in the attached schedule.

“The inclusion of the identified categories of liabilities and beneficiaries in the Programme, subject to final verification, reconciliation and certification by the relevant Government Agencies.

“The authorisation of the Honourable Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office and other relevant Agencies, to take all necessary steps to implement the Programme in accordance with the approval of the National Assembly and such other approvals, resolutions or legislative measures as may be necessary to give full effect to the Programme.

“The proposed arrangement is expected to facilitate the orderly settlement of the outstanding obligations without imposing an immediate and disproportionate cash-flow burden on the Federal Government. It will also support fiscal planning by spreading the associated repayment obligations over an appropriate tenor, consistent with prudent debt management principles.

“In view of the magnitude and age of some of the outstanding liabilities, as well as the potential for further accumulation of interest and associated costs, the matter requires urgent consideration and approval by the National Assembly. Early legislative approval will enable the Federal Government to commence the necessary processes to issue the Promissory Notes and bring closure to the affected liabilities.

Accordingly, the detailed schedule of the liabilities, including the relevant Categories, beneficiaries, amounts and supporting documentation, is forwarded herewith for the information and consideration of the National Assembly

“I trust that the House of Representatives will accord this request the expeditious consideration it deserves in the national interest and in support of the Federal Government’s efforts to strengthen fiscal sustainability, honour legitimate obligations and promote confidence in the Nigerian economy,” the letter added.