x

Federal Government Set to Clear N187.32bn Contractors’ Debt by November 2023

By Daniel Edu

In the upcoming administration of President Bola Tinubu, it appears that an approximate sum of N187.32 billion will be allocated to resolving outstanding debts owed to local contractors within this fiscal year, as per investigations conducted by The PUNCH.

These debts have been outlined as promissory notes in a document titled ‘Schedule of promissory notes issued by category as at September 30, 2022,’ issued by the Debt Management Office.

A promissory note, as explained by Investopedia.com, is a financial instrument that entails a written commitment from one party (the note’s issuer or maker) to pay a specific sum of money to another party (the note’s payee), either upon request or at a predetermined future date.

Section 4 of the Government Promissory Notes Act stipulates that these government promissory notes are funded from the collective revenue and assets of the federation.

The section reads, “The principal sums and interest represented or secured by any government promissory notes are hereby charged upon and shall be payable out of the general revenue and assets of the federation.”

Two such promissory notes have been released to resolve the debts owed to local contractors. The initial note was published on November 23, 2020, while the second was released on July 12, 2021.

The repayment of these debts will occur in three currencies: the Nigerian naira, the US dollar, and the euro, in accordance with a Central Bank of Nigeria (CBN) document.

The liabilities are divided as follows: Naira liability stands at N57.83 billion, dollar liability is $26.48 million (equivalent to N19.78 billion), and euro liability is €133.76 million (equivalent to N109.71 billion).

Both promissory notes are slated for clearance by November 23, 2023.

The Federal Government holds a debt of approximately N11.16 trillion towards contractors engaged in the construction of various highways across the nation, along with certificates of project completion.

Hot this week

Editors Urge Government To Create Safe, Enabling Environment For Journalists

· Ask security agents to find missing Vanguard journalistAs...

EXCLUSIVE: Buhari orders probe of Isa Funtua, AMCON over keystone and Etisalat

Following the controversy generated by the leading opposition party,...

6 Signs your boyfriend thinks you are ugly -Take note of No. 2

They say there are three kinds of people; the...

2023: South-East, Middle Belt Forum Endorses Peter Obi

The South-East and Middle Belt Forum has endorsed the...

20-Year-Old Arrested for Armed Robbery, Homicide in Kano

The Kano State Police Command has arrested a 20-year-old...

Oluremi Tinubu: Women and Youth Key to Ending Food Insecurity

Senator Oluremi Tinubu, the wife of President Bola Tinubu,...

Remo Reaffirms Distinct Identity in State Creation Demand

The Remo Committee on State Creation has restated its...

2,187 primary school athletes gather in Uyo for MTN champs

By Ogenyi Ogenyi, UyoNot less than 2,187 athletes from...

NiMet Forecasts Three Days of Haziness, Thunderstorms Nationwide

The Nigerian Meteorological Agency (NiMet) has issued a weather...

Over 1.5 Million UTME Candidates Score Below 200, Sparking Concern

The Joint Admissions and Matriculation Board (JAMB) on Monday...
spot_img

Related Articles

Popular Categories

spot_imgspot_img