FG Approves N2.7trn For Contractors, Pensioners

The Federal Executive Council (FEC) on Wednesday approved for release the sum of N2.7 trillion following the outcome of an exhaustive committee report that ascertained the level of Federal Government’s debt profile.

Minister of Finance, Kemi Adeosun, made the disclosure to State House correspondents after the FEC meeting chaired by Acting President Yemi Osinbajo.

According to the minister a larger chunk of the fund would go into settling outstanding debts consisting of N740 billion pensions and promotional salary arrears (not discounted), and N1.93 trillion (discounted) of other obligations, including dues to contractors and suppliers.

She said the fund will be disbursed through the Ministry of Finance and will come in form of promissory notes and debt issuance programme to resolve a number of inherited and long outstanding Federal Government obligations to contractors, state governments and employees.

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