President Bola Tinubu’s administration is projected to allocate around N187.32 billion this year to clear debts owed to local contractors, based on information uncovered reporter.

These debts are documented as promissory notes within a report titled ‘Schedule of promissory notes issued by category as at September 30, 2022,’ released by the Debt Management Office.

Promissory notes, as explained by Investopedia, are written commitments where one party pledges to repay another party a specific sum of money on a specified future date.

The Government Promissory Notes Act’s Section 4 outlines that these notes are settled from the general revenue and assets of the federation.

Promissory notes released to settle obligations to local contractors

The analysis revealed that two promissory notes were released to settle obligations to local contractors. The initial note was dated November 23, 2020, while the second was issued on July 12, 2021.The payment is anticipated to encompass naira, dollar, and euro liabilities.

In detail, the naira amount is N57.83 billion, the dollar portion stands at $26.48 million (approximately N19.78 billion), and the euro share is €133.76 million (equivalent to N109.71 billion).

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Both of these promissory notes are expected to be resolved by November 23, 2023.Earlier, It was reported that the Federal Government had an outstanding debt of about N11.16 trillion to contractors for various highway construction projects and completion certificates across the nation.