Minister of Finance, Mrs. Kemi Adeosun, said yesterday, that the Federal Government would settle the inherited debts and contractual obligations to local contractors between 2006 and 2015.
The minister made this known while appearing before the Ad-Hoc Committee of the Senate on “Promissory Note Programme and Bond Issuance”.
The committee is chaired by Deputy Chief Whip, Senator Francis Alimikhena.
She explained that the debts owed to various classes of contractors, including the terminal benefits of ex-Nigerian Airways workers, would repaid through promissory notes and bonds issuance.
The minister stated that the unpaid Federal Government obligations constituted a drag on economic activity across many sectors, adding that the present administration was determined to address the problem.
She listed the unpaid obligations to include obligations to pensioners and salary & promotion arrears to civil servants; obligations to contractors and suppliers who in turn, owe banks increasing the quantum of non-performing loans, and unpaid electricity bills by the Ministries, Departments and Agencies (MDAs).