The Senate has approved promissory notes and bond issuances of N102.2 billion to Delta and Taraba States as refunds for projects executed on behalf of the federal government.
While N67.9 billion was approved for Delta State, N34.3 billion was approved for Taraba State.
The Senate also approved N43.5 billion as payment for ”contractors liabilities”.
The contractors are Setraco Nigeria Limited (N37.4 billion); Bouygues Nigeria Limited (N4.6 billion); Simidia S&I International Company Limited (N346 million); Hamdala Homes &Agencies Limited (N210.6 million) and Lejmej Nigeria Limited N960 million.
The approval was a sequel to the adoption of the interim report of the ad-hoc committee set to consider the Promissory Note Programme and a Bond Issuance to Settle Inherited Local Debts and Contractual Obligations on the refund 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 promissory notes to offset inherited local debts.
The Senate eventually resolved to set up an ad-hoc committee to look into the programme and advise the Senate appropriately.
-- Premimume Times