President Bola Tinubu has requested the House of Representatives to approve the issuance of promissory notes worth N269.45bn to settle outstanding contractual and other verified financial obligations owed by the Federal Government. The request was contained in a letter dated August 18, 2026, presented to the House by Speaker Tajudeen Abbas. The proposed issuance aims to cover liabilities arising from government contracts, projects, and other verified financial commitments to various creditors.
The total amount involved is N269,446,402,822.56. According to the Secretary to the Government of the Federation (SGF), George Akume, the request follows a comprehensive review of outstanding liabilities by relevant ministries, departments, and agencies (MDAs). Only claims that have been verified and validated will qualify for settlement under the programme. The proposal is designed to help the government meet its financial obligations without placing excessive pressure on its immediate cash flow.
The proposed programme is intended to provide a structured, transparent, and fiscally responsible framework for settling outstanding obligations. It aims to ensure that only duly verified and validated claims are admitted for settlement. The implementation of the programme will comply with existing laws, financial regulations, and established public debt management procedures. The arrangement will also help curb the further accumulation of interest, penalties, and other costs associated with prolonged delays in settling government obligations.
The government expects the initiative to provide relief to affected creditors and reinforce confidence in its commitment to honour legitimate financial obligations. The Federal Government had previously deployed the Promissory Note Programme to settle inherited domestic debts and outstanding contractual commitments. The earlier programme received approval from the Federal Executive Council before being submitted to the National Assembly for legislative approval.
Under the latest proposal, lawmakers are being asked to authorise the issuance of promissory notes up to N269.45bn, or such other amount as they may deem appropriate, to cover the liabilities listed in the accompanying schedule. The request also seeks authorisation for the Minister of Finance and Coordinating Minister of the Economy to work with the Debt Management Office (DMO) and other relevant agencies to implement the programme.
The proposed approval would cover specified categories of liabilities and beneficiaries, subject to final verification, reconciliation, and certification by the appropriate government institutions. The programme will enable the government to spread its repayment obligations over an appropriate period, thereby easing immediate demands on public finances. Spreading the repayment obligations over an appropriate tenor will support fiscal planning and align with the principles of prudent debt management.
The SGF urged the National Assembly to give the request urgent consideration, citing the age and magnitude of some of the liabilities and the risk of additional costs if settlement was delayed. Early legislative approval will allow the government to commence the necessary processes for issuing the promissory notes and resolving the outstanding claims. A detailed schedule containing the categories of liabilities, names of beneficiaries, amounts involved, and supporting documents has been submitted to the National Assembly for scrutiny.
Key points
- The Federal Government seeks to settle outstanding contractual and financial obligations through the issuance of promissory notes worth N269.45bn.
