President Bola Tinubu has approached the House of Representatives for approval to issue promissory notes valued at N269.45bn to settle outstanding contractual obligations and other verified debts owed by the Federal Government.
The request was conveyed in a letter dated August 18, 2026, signed by the Secretary to the Government of the Federation, George Akume, and read by the Speaker of the House, Tajudeen Abbas, during Tuesday’s plenary.
The proposed issuance, amounting to N269,446,402,822.56, forms part of efforts to address outstanding financial commitments to various creditors through the expansion of the Federal Government’s Promissory Note Programme.
In the letter, Akume said the request followed a comprehensive assessment of outstanding liabilities by relevant Ministries, Departments and Agencies (MDAs), adding that the programme would accommodate only claims that had undergone verification and validation.
He said the President had approved the proposal to establish a structured framework for settling the obligations while ensuring that the process complied with existing financial regulations and public debt management procedures.
“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 letter stated.
According to Akume, the liabilities cover contractual commitments, project-related obligations and other verified financial claims against the government.
He explained that the programme would provide an orderly and transparent mechanism for meeting the obligations without requiring the government to make immediate cash payments for the entire amount.
The SGF said the arrangement would also help limit the accumulation of interest, penalties and other expenses arising from delays in settling the debts.
The government expects the proposed measure to ease the financial difficulties of affected creditors and strengthen confidence in its willingness to honour legitimate commitments.
Akume said the Federal Government had previously used the Promissory Note Programme to settle inherited domestic debts and outstanding contractual obligations.
He noted that the earlier initiative was approved by the Federal Executive Council before being presented to the National Assembly for legislative authorisation.
Under the current proposal, lawmakers are expected to approve promissory notes of up to N269.45bn, or another amount they consider appropriate, to settle the verified liabilities outlined in the accompanying documentation.
The President is also seeking authorisation for the Minister of Finance and Coordinating Minister of the Economy to coordinate implementation with the Debt Management Office and other relevant government agencies.
The proposed approval would extend to identified categories of liabilities and beneficiaries, subject to final verification, reconciliation and certification by the appropriate authorities.
Akume said the arrangement would help the government manage its financial commitments more effectively by spreading repayment obligations over an agreed 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,” he said.
He added that the repayment structure would support fiscal planning and remain consistent with prudent debt management principles.
However, the government urged the National Assembly to consider the request urgently, warning that some of the liabilities had remained outstanding for a considerable period and could attract additional costs if left unresolved.
“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 said prompt approval would enable the government to begin the necessary procedures for issuing the promissory notes and resolving the outstanding obligations.
He disclosed that a detailed schedule containing the categories of debts, beneficiaries, amounts involved and supporting documents had been forwarded to the National Assembly to facilitate its consideration.
The proposal now requires legislative scrutiny, with lawmakers expected to assess the claims and determine the level of approval to grant before the instruments can be issued.
A promissory note is a written undertaking by an issuer to pay a specified amount to a beneficiary either on demand or at an agreed future date.
In public finance, the instrument can be used to formalise government liabilities and spread repayment over a specified period, reducing the need for immediate cash disbursement.
If approved, the proposed programme would enable the Federal Government to recognise and schedule the settlement of the verified debts, with repayment terms subject to the authorised framework and applicable debt management regulations.
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