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

The Federal Government has requested the House of Representatives to approve the institution and growth of its Promissory Note Programme to settle excellent 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 learn it at plenary on Tuesday.

The SGF defined that the request arose from the necessity to tackle the excellent obligations recognized for the assorted classes of collectors, as detailed within the accompanying schedule and supporting documentation.

According to him, the liabilities comprised obligations arising from excellent contractual, project-related, and different verified monetary commitments of the federal government, with an combination verified quantity of N269,446,402,822.56.

“Following a complete evaluate of the excellent obligations by the related Ministries, Departments and Agencies and in furtherance of the Federal Government’s dedication to the orderly settlement of professional obligations, His Excellency, Mr President, has thought of and accepted the proposal for the institution and growth of the Promissory Note Programme to offer an applicable mechanism for the settlement of the liabilities.

‘The proposed Programme is meant to offer a structured, clear and fiscally accountable framework for settling the excellent obligations, whereas guaranteeing that solely duly verified and validated claims are admitted for settlement. The implementation might be undertaken in accordance with relevant legal guidelines, extant monetary rules and established procedures for public debt administration,” the letter learn partly.

Akume acknowledged that the proposal can also be meant to mitigate the continued accumulation of curiosity, penalties and different monetary prices related to the excellent liabilities, whereas offering aid to affected collectors and strengthening confidence within the Federal Government’s dedication to honouring professional contractual and different obligations.

“It is pertinent to notice that the Federal Government’s Promissory Note Programme has beforehand been utilised as an instrument for the settlement of inherited native money owed and contractual obligations.

“The institution of the sooner programme adopted Federal Executive Council approval and was subsequently subjected to National Assembly approval, according to the relevant fiscal and public debt administration framework.

“In view of the foregoing and pursuant to the approval granted by His Excellency, Mr President, I’m directed to respectfully request the National Assembly to think about and grant the mandatory legislative approval for: -the institution and growth of the Federal Government of Nigeria Promissory Note Programme

“The issuance of Promissory Notes in an combination quantity 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 quantity as could also be accepted by the National Assembly, for the settlement of the verified excellent liabilities contained within the hooked up schedule.

“The inclusion of the recognized classes of liabilities and beneficiaries within the Programme, topic to closing verification, reconciliation and certification by the related Government Agencies.

“The authorisation of the Honourable Minister of Finance and Coordinating Minister of the Economy, in collaboration with the Debt Management Office and different related Agencies, to take all essential steps to implement the Programme in accordance with the approval of the National Assembly and such different approvals, resolutions or legislative measures as could also be essential to present full impact to the Programme.

“The proposed association is predicted to facilitate the orderly settlement of the excellent obligations with out imposing a direct and disproportionate cash-flow burden on the Federal Government. It will even assist fiscal planning by spreading the related reimbursement obligations over an applicable tenor, according to prudent debt administration rules.

“In view of the magnitude and age of among the excellent liabilities, in addition to the potential for additional accumulation of curiosity and related prices, the matter requires pressing consideration and approval by the National Assembly. Early legislative approval will allow the Federal Government to begin the mandatory processes to challenge the Promissory Notes and produce closure to the affected liabilities.

Accordingly, the detailed schedule of the liabilities, together with the related Categories, beneficiaries, quantities and supporting documentation, is forwarded herewith for the data 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.