The Federal Executive Council, FEC, has approved N2.7 trillion for payment of the Federal Government’s discounted obligations.
The money consists of N740 billion of outstanding pensions and promotional salary arrears not discounted and N1.93 trillion discounted, of other obligations including dues to Federal Government contractors and suppliers.
This was revealed yesterday by the Minister of Finance, Kemi Adeosun, while briefing State House correspondents at the end of the council meeting at the Presidential Villa, Abuja.
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.
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