President Muhammadu Buhari has submitted a letter to the Senate, requesting approval for the payment of a judgment debt amounting to $566,754,584.31, £98,526,012.00, and N226,281,801,881.64 owed by the Federal government.
The President’s letter was read in Abuja by the President of the Senate, Senator Ahmad Lawan.
President Buhari emphasized that granting the approval would enable the government to settle the outstanding judgment debt through the issuance of promissory notes.
The letter read: “The Distinguished Senate President may wish to be informed that the Federal Executive Council (FEC) at its meeting of March 29, 2023, approved the liquidations of top priority judgement debts and general judgement debts owed by Ministries, Departments and Agencies (MDAs) through the issuance of promissory notes.
“The judgment debts are to be settled through the issuance of promissory notes which will then be redeemed over time through provisions in the budgets of the Federal Government of Nigeria. Thus debt securities have been issued for the settlement of the judgement debts and approval of the National Assembly is required for this purpose.
“In view of the foregoing, I wish to request the Senate to kindly consider and approve through its resolution the settlement of the top priority judgement debts and general judgement debts incurred by Federal MDAs in the sum of USD566,754,584.31, £98,526,012.00 and N226,281,801,881.64 through the issuance of promissory notes.
“The Honourable Attorney-General of the Federation and Minister of Justice and the Honourable Minister of Finance, Budget and National Planning shall provide any information that may be required by the Senate for the consideration of this request.”
The request for approval highlights the government’s commitment to fulfilling its financial obligations and resolving outstanding debts. By seeking the Senate’s endorsement, President Buhari demonstrates a transparent and accountable approach to addressing the debt situation.
The decision to utilize promissory notes as a means of payment reflects a strategic approach to managing the financial resources of the federal government. This method allows for the orderly settlement of debts while ensuring the government’s fiscal sustainability.
The Senate’s consideration and eventual approval of the President’s request will play a crucial role in facilitating the resolution of the judgment debt and upholding the government’s commitment to financial responsibility.
It remains to be seen how the Senate will deliberate on and respond to the President’s request, but this development underscores the ongoing efforts of the government to address outstanding financial obligations and maintain the stability of the country’s economy.