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Promissory note programme: Senate approves N102.2bn refund to Delta, Taraba

ABUJA— THE Senate, yesterday, approved a promissory note programme and bond issuance of N102.2 billion to Delta and Taraba states as refund for projects executed on behalf of the Federal Government.

The Red Chamber

 

 

 

 

 

 

 

With the approval by the Senate, Delta State got N67.9 billion, while N34.3 billion was approved for Taraba State, even as it also approved N43.5 billion as payment to contractors liabilities.

The approvals by the upper chamber were sequel to the presentation and consideration of the Ad-hoc Committee on Promissory Note Programme and Bond Issuance to settle inherited local debts and contractual obligations on refund to state governments; claims in Export Expansion Grant, EEG; scheme and contractual liabilities of projects executed by state governments on behalf of the Federal government by the Deputy Chief Whip of the Senate and Chairman of the Committee, Senator Francis Alimikhena (APC, Edo North).

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According to the approval, the contractors are Setraco Nigeria Limited, N37,432,400,000; Bouygues Nigeria Limited, N4,636,815,486; Simidia S&I International Company Limited, N346,191,766; Hamdala Homes &Agencies Limited, N210,600,000 and Lejmej Nigeria Limited, N960,000,000.

Also approved, was N193 billion to clear outstanding claims of 269 verified companies (who are beneficiaries of the Export Expansion Grant, EEG, scheme.

A promissory note is a debt instrument, which one party promises in writing to pay a determined sum of money to the other, either at a fixed or determinable future time, under specific terms.

It would be recalled that the Senate had on May 9, 2018, set up a seven-member committee to deliberate on President Muhammadu Buhari’s request for over N2 trillion for the issuance of promissory note to offset inherited local debts and bond issuance to civil servants as well as contractors.

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The formation of the committee was sequel to an executive communication by President Buhari to the Senate on the matter.

Reading the communication at plenary, Senate Leader, Ahmad Lawan, suggested that the Senate referred the matter to the appropriate committee to deliberate upon, but the Senate eventually resolved to set up an ad-hoc committee to look into the promissory note and bond issuance programme and advice it appropriately.

Presenting the report, chairman of the committee, Senator Francis Alimikhena, noted that the EEG scheme, an incentive programme of the Federal Government, was designed to support active exporters in expanding their businesses as well as help in the diversification of the economy.

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