The Senate has approved promissory notes and bond issuances worth N14.6 billion to the Bauchi State government as refunds for projects it executed on behalf of the federal government.
The approval was a sequel to the adoption of the report of the ad-hoc committee which was set up to consider the ‘Promissory Note Programme and a Bond Issuance to Settle Inherited Local Debts and Contractual Obligations’ aimed at granting refunds to state governments for projects executed on behalf of the federal government.
A promissory note is a debt instrument which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time, under specific terms.
President Muhammadu Buhari had in March written to the National Assembly, seeking its approval for the issuance of the notes to offset inherited local debts.
The Senate eventually resolved to set up an ad-hoc committee to look into the programme and advise appropriately.
The lawmakers in December 2018, approved promissory notes and bond issuances of N67.9 billion and N34.3 billion for Delta and Taraba States respectively.
The chairman of the committee, Francis Alimekhena, who presented the report then, stated that outstanding debts for 23 states have been approved so far “leaving two states behind – Bauchi and Kogi States.”
He then recommended that the Senate approve the N14.6 billion for Bauchi State.
He, however, failed to state why the promissory notes for Kogi State are yet to be approved.
The Senate unanimously adopted the recommendation of the committee.