The administration of President Bola Tinubu is poised to settle a substantial debt of approximately N187.32 billion owed to local contractors in the current year.
This was disclosed in a document titled, ‘Schedule of promissory notes issued by category as of September 30, 2022’ by the Debt Management Office.
A promissory note is a binding debt instrument outlining a written commitment from one party, the issuer or maker of the note, to disburse a specific sum of money to another party, the payee, either upon demand or at a designated future date.
The framework for settling such obligations as enshrined in Section 4 of the Government Promissory Notes Act, stipulates that government promissory notes are to be funded from the general revenue and assets of the federation.
The investigation revealed that two promissory notes were issued to address outstanding liabilities to local contractors. The initial note was released on November 23, 2020, while the subsequent note was issued on July 12, 2021.
According to the document from the Central Bank of Nigeria, the debt repayment will encompass three currencies: the naira, dollar, and euro. The naira component amounts to N57.83 billion, with the dollar accounting for $26.48 million (equivalent to N19.78 billion), and the euro constituting €133.76 million (approximately N109.71 billion).
Both promissory notes are slated for resolution by November 23, 2023, indicating a firm commitment by the government to fulfill its financial obligations to local contractors.
President Bola Tinubu’s administration is thus navigating the path of fiscal responsibility, seeking to address these outstanding debts while bolstering the nation’s infrastructure and fostering a conducive environment for further development.
