President Muhammadu Buhari, on Tuesday, wrote a letter to the Senate, seeking the establishment of a promissory note programme and a bond issuance to resettle inherited local debts and contractual obligation.
In the letter read by the Senate President, Bukola Saraki, Mr. Buhari explained the obligations which he believed establishment of the promissory note and bond issuance will clear.
The letter reads: “Request for the establishment of a promissory note program and a bond issuance to resettle inherited local debts and contractual obligation.
“I wish to convey the resolution of the Federal Executive council requesting the National Assembly to pass a bill to effect the promissory note and bond issuance program to clear the long standing obligations inherited by this administration.
“The promissory note and bond issuance program has become imperative to clear these obligations which include:
a) Unpaid obligations to pensioners, salaries and promotional arrears of civil servants.
b) Obligation to petroleum marketers
c) Contractors and suppliers debt
d) Unpaid power bills and obligation from tariffs reversal in 2014
e) Export expansion grant IMBET
f) Judgement debt
g) Refunds to state government for projects undertaken on behalf of federal government
“As you may be aware, section 41 (1a), 44 (2b) of the Fiscal Responsibility Act (FRA), stipulates that the proceeds of borrowing by government at all tiers shall be applied solely towards capital expenditure to provide legal backing to clear the recurrent expenditure component of the obligation in request for amendment of the FRA sent to the national assembly via a letter from the presidency dated 4th august 2017.
“I have attached information of the subject program from the honourable minister of finance for your consideration who may also provide additional information or clarification that may require for promote approval of this program while anticipating your usual cooperation.”
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