- FEC approves N2.7 trillion for discounted obligations of the federal government
- N740 billion of the money is meant for paying outstanding pensions and promotional salary arrears
- N1.93 trillion for dues to federal government contractors and suppliers
The Federal Executive Council (FEC) on Wednesday, July 12 approved the sum of N2.7 trillion to pay the discounted obligations of the federal government of Nigeria.
NAIJ.com learnt that N740 billion out of the money is meant for paying outstanding pensions and promotional salary arrears (not discounted) to civil servants.
Some of the remaining N1.93 trillion (discounted) to offset the dues of federal government to contractors and suppliers, and the rest for other obligations.
According to a report by Premium Times, this was announced by the Minister of Finance, Kemi Adeosun, while briefing State House correspondents after the FEC meeting on Wednesday.
READ ALSO: APC is in pains over Supreme Court ruling - Sunny Onuesoke
Adeosun said the obligations accumulated over the last two decades and will be paid through bonds and promissory note issuance to resolve long outstanding dues and to also stimulate economic activity.
The spokesperson for the ministry, Salisu Danbatta, in a background note said the debt issuance programme is to resolve a number of inherited and long outstanding federal government obligations to contractors, state governments and employees.
He said: “This will be followed by a request to the National Assembly to approve the programme ahead of implementation."
PAY ATTENTION: Read the news on Nigeria’s #1 news app
Meanwhile, the federal government has intervened to ameliorate the situation in some states of the federation ravaged by flood.
The intervention comes in the form of a N1.6billion intervention fund which was approved by the acting president, Yemi Osinbajo, for the immediate release to 16 states who have suffered from flooding.
The states that will benefit from the intervention fund include Akwaibom, Kebbi, Enugu, Abia, Oyo, Plateau, Edo, Bayelsa, Kwara among others.
Watch video of what Nigerians thinks about restructuring the nation:
