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FEC approves N2.7tn to offset pension, contract, other debts
The Ministry of Finance has been authorized to offset the N2.7 trillion accumulated debt owed pensioners, contractors, as well as other obligations.
This was as the Federal Executive Council, during its weekly meeting on Wednesday, presided over by Acting President Yemi Osinbajo, approved the proposal presented to it by the ministry in respect to the debts.
The Minister of Finance, Mrs. Kemi Adeosun, who made this known to State House correspondents after the meeting, added that the obligations that accumulated over the last two decades would be paid through bond and promissory note issuance.
According to Adeosun, the inherited and long-outstanding Federal Government obligations included those being owed contractors, state governments and employees.
She explained that following the council’s approval, the Federal Government would now ask the National Assembly to approve the programme for onward implementation.
Read also: Adeosun, Udoma on collision course over how to source $2.3bn budget deficit
She further stated that the obligations consisted chiefly of dues owed state governments, oil marketers, power generation and distribution companies, suppliers, and contractors, by government’s parastatals and agencies, payments due under the Export Expansion Grant, outstanding judgement balances, as well as pension and other benefits to Federal Government employees.
Adeosun argued that the resolution of some of the obligations that existed as far back as 1994 would significantly improve liquidity in critical sectors of the economy.
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