By Tracy Moses
President Bola Tinubu has sought the approval of the House of Representatives for the issuance of promissory notes worth N269.45bn to settle outstanding contractual, project-related and other verified financial obligations owed by the Federal Government to various creditors.
The request, contained in a letter dated August 18, 2026, was read by the Speaker of the House, Tajudeen Abbas, during Tuesday’s plenary.
In the letter, transmitted through the Secretary to the Government of the Federation (SGF), Senator George Akume, the President asked the National Assembly to approve the establishment and expansion of the Federal Government’s Promissory Note Programme to cover outstanding liabilities totalling N269,446,402,822.56.
The proposed programme is intended to provide a structured framework for settling the obligations without placing immediate pressure on the government’s cash flow.
Akume said the request followed a review of outstanding liabilities by relevant ministries, departments and agencies (MDAs), adding that only claims that had been verified and validated would qualify for settlement.
He said: “I write to convey the compliments of His Excellency, President Bola Ahmed Tinubu, GCFR, and transmit for the consideration and approval of the National Assembly the request for the establishment and expansion of the Federal Government of Nigeria Promissory Note Programme for the settlement of outstanding and verified liabilities of the Federal Government.
“The request arises from the need to address the identified outstanding obligations owed to the various categories of creditors, as detailed in the accompanying schedule and supporting documentation.
“The liabilities comprise obligations arising from outstanding contractual, project-related and other verified financial commitments of government, with an aggregate verified amount of Two Hundred and Sixty-Nine Billion, Four Hundred and Forty-Six Million, Four Hundred and Two Thousand, Eight Hundred and Twenty-Two Naira, Fifty-Six Kobo (N269,446,402,822.56).”
According to Akume, Tinubu approved the proposal following a comprehensive review of the liabilities, with the aim of establishing an orderly process for meeting the government’s financial commitments.
He said the programme would provide a transparent and fiscally responsible framework for settling the debts, while ensuring that only duly verified claims were admitted.
“The implementation will be undertaken in accordance with applicable laws, extant financial regulations and established procedures for public debt management,” he said.
Akume explained that the arrangement would help prevent further accumulation of interest, penalties and other costs arising from unpaid obligations. It would also provide relief to affected creditors and reinforce confidence in the government’s commitment to honouring legitimate claims.
He noted that the Federal Government had previously used the Promissory Note Programme to settle inherited domestic debts and contractual obligations. The earlier programme was approved by the Federal Executive Council before being submitted to the National Assembly for legislative approval.
Under the latest proposal, lawmakers are being asked to approve the issuance of promissory notes of up to N269.45bn, or such other amount as they may consider appropriate, to settle the verified liabilities listed in the accompanying schedule.
The President is also seeking 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 identified categories of liabilities and beneficiaries, subject to final verification, reconciliation and certification by the appropriate government agencies.
Explaining the financial implications, Akume said the arrangement would enable the government to meet its obligations while spreading repayment commitments over an appropriate period.
“The proposed arrangement is expected to facilitate the orderly settlement of the outstanding obligations without imposing an immediate and disproportionate cash-flow burden on the Federal Government. It will also support fiscal planning by spreading the associated repayment obligations over an appropriate tenor, consistent with the principles of prudent debt management,” he said.
The government also stressed the urgency of the request, citing the age and magnitude of some of the outstanding liabilities and the risk of further increases in associated costs.
“In view of the magnitude and age of some of the outstanding liabilities, as well as the potential for further accumulation of interest and associated costs, the matter requires urgent consideration and approval by the National Assembly,” the letter stated.
Akume added that early legislative approval would enable the government to begin the necessary processes for issuing the promissory notes and settling the outstanding obligations.
He said a detailed schedule containing the categories of liabilities, beneficiaries, amounts involved and supporting documents had been forwarded to the National Assembly for consideration.
The request leaves lawmakers with the responsibility of scrutinising the claims and determining the extent of approval to be granted before the proposed notes can be issued.
A promissory note is a written financial instrument through which an issuer undertakes to pay a specified amount to a beneficiary, either on demand or at an agreed future date. In public debt management, such notes can be used to formalise outstanding obligations and schedule repayment over an agreed period rather than requiring immediate payment in cash.
For the Federal Government, the proposed programme would provide a mechanism for formally recognising and scheduling payment of verified liabilities while managing short-term cash-flow pressures. Its implementation, however, would depend on legislative approval and compliance with applicable public debt management rules and financial regulations.