By Mercy Aikoye
President Bola Tinubu has sought the National Assembly’s approval to issue promissory notes worth N269.44 billion to settle outstanding verified liabilities owed by the Federal Government to various creditors.
The request, which was transmitted to the House of Representatives through the Secretary to the Government of the Federation, Senator George Akume, was read by Speaker Abbas Tajudeen during plenary on Tuesday.
In the letter, titled “Request for Transmission, Establishment and Expansion of the Promissory Note Programme for the Outstanding Federal Government Liabilities,” Tinubu said the proposal was aimed at addressing unpaid contractual obligations, project-related debts and other verified financial commitments.
He explained that the liabilities had been reviewed by the relevant ministries, departments and agencies as part of efforts to ensure the settlement of legitimate claims and strengthen the government’s fiscal management framework.
The President said the proposed programme would provide a transparent and structured mechanism for settling the debts, with beneficiaries admitted only after their claims had undergone the necessary verification and validation.
According to him, the arrangement would help curb the continued accumulation of interest, penalties and other costs associated with the outstanding obligations, while providing relief to affected creditors.
Tinubu said the initiative would also reinforce confidence in the Federal Government’s willingness to honour its contractual commitments without placing an immediate and excessive demand on its cash flow.
“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,” he stated.
He added that the repayment obligations would be spread over an appropriate period to support fiscal planning and ensure compliance with prudent debt management principles.
The President recalled that the Federal Government had previously deployed the Promissory Note Programme to settle inherited domestic debts and contractual obligations. The earlier programme received Federal Executive Council approval and was subsequently submitted to the National Assembly for legislative approval.
Under the latest proposal, the National Assembly is expected to approve the issuance of promissory notes totalling N269,446,402,822.56, or another amount it may approve, to cover the verified liabilities contained in the accompanying schedule.
The request also seeks legislative authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office and other relevant agencies, to take the necessary steps to implement the programme in line with applicable laws and financial regulations.
Tinubu urged lawmakers to give the proposal urgent consideration, warning that delays could lead to further accumulation of interest and other financial costs associated with the unpaid obligations.
He said prompt approval would allow the government to begin the processes required for issuing the promissory notes and resolving the outstanding claims.
The detailed schedule of the liabilities, including the categories of creditors, beneficiaries, amounts involved and supporting documents, was forwarded to the National Assembly for consideration.
