FG approves payment of N2.7tn debts to pensioners, contractors

The Federal Executive Council on Wednesday approved a proposal
presented by the Ministry of Finance to offset accumulated Federal
Government’s N2.7tn debts.

The Minister of Finance, Mrs. Kemi Adeosun, disclosed this to
State House correspondents at the end of the weekly meeting of the
Council presided over by the Acting President, Yemi Osinbajo, at
the Presidential Villa, Abuja.

Adeosun said the obligations that accumulated over the last two
decades would be paid through bond and promissory note
issuance.

She said the inherited and long outstanding Federal Government’s
obligations included those being owed contractors, state
governments and employees.

She said with the council’s approval, the government would make
a request to the National Assembly to approve the programme ahead
of implementation.

The obligations, according to her, largely consisted of dues
owed state governments, oil marketers, power generation and
distribution companies, suppliers, and contractors by government’s
parastatals and agencies, payments due under the Export Expansion
Grant, outstanding judgement balances as well as pension and other
benefits to Federal Government employees.

She said the resolution of some of the obligations that dated
back as far as 1994 would significantly enhance liquidity in
critical sectors of the economy.

The Federal Executive Council on Wednesday approved a proposal
presented by the Ministry of Finance to offset accumulated Federal
Government’s N2.7tn debts.

The Minister of Finance, Mrs. Kemi Adeosun, disclosed this to
State House correspondents at the end of the weekly meeting of the
Council presided over by the Acting President, Yemi Osinbajo, at
the Presidential Villa, Abuja.

Adeosun said the obligations that accumulated over the last two
decades would be paid through bond and promissory note
issuance.

She said the inherited and long outstanding Federal Government’s
obligations included those being owed contractors, state
governments and employees.

She said with the council’s approval, the government would make
a request to the National Assembly to approve the programme ahead
of implementation.

The obligations, according to her, largely consisted of dues
owed state governments, oil marketers, power generation and
distribution companies, suppliers, and contractors by government’s
parastatals and agencies, payments due under the Export Expansion
Grant, outstanding judgement balances as well as pension and other
benefits to Federal Government employees.

She said the resolution of some of the obligations that dated
back as far as 1994 would significantly enhance liquidity in
critical sectors of the economy.