President Bola Tinubu has asked the House of Representatives to approve 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, Tajudeen Abbas, during Tuesday’s plenary.
The government said the proposed expansion of the Federal Government’s Promissory Note Programme would provide a structured mechanism for settling the liabilities while limiting the immediate pressure on its cash flow.
In the letter, signed by the Secretary to the Government of the Federation, Senator George Akume, Tinubu sought legislative approval for the establishment and expansion of the programme, as well as the issuance of promissory notes to cover the outstanding obligations. The total amount involved is N269,446,402,822.56.
Akume said the request followed a review of outstanding obligations by relevant Ministries, Departments and Agencies, adding that the programme would admit only claims that had been verified and validated.
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 (269,446,402,822.56).”
According to the SGF, the President has approved the proposal following a comprehensive review of the liabilities, with the aim of providing an orderly framework for meeting the government’s financial commitments.
He said, “The proposed programme is intended to provide a structured, transparent and fiscally responsible framework for settling the outstanding obligations, while ensuring that only duly verified and validated claims are admitted for settlement.
“The implementation will be undertaken in accordance with applicable laws, extant financial regulations and established procedures for public debt management.”
Akume added that the arrangement would help prevent further accumulation of interest, penalties and other costs associated with unpaid obligations, while providing relief to affected creditors and strengthening confidence in the government’s willingness to honour legitimate commitments.
He noted that the Federal Government had previously used the Promissory Note Programme to settle inherited domestic debts and contractual obligations. The earlier programme, he said, received Federal Executive Council approval before being subjected to National Assembly approval.
Under the latest request, the National Assembly is expected to approve the issuance of promissory notes up to N269.45bn, or another amount it may consider appropriate, for the settlement of the verified liabilities contained 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 and other relevant agencies to implement the programme.
The proposed approval would also cover the inclusion of identified categories of liabilities and beneficiaries, subject to final verification, reconciliation and certification by the relevant government agencies.
Explaining the financial implications of the arrangement, Akume said the programme would enable the government to settle its obligations without imposing an immediate and disproportionate burden on public finances.
“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 added
The government, however, acknowledged the urgency of the request, citing the age and magnitude of some of the outstanding liabilities and the possibility 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 approval would allow the government to begin the processes required to issue the promissory notes and bring the outstanding liabilities to a close.
He said a detailed schedule containing the categories of liabilities, beneficiaries, amounts and supporting documents had been forwarded to the National Assembly for consideration.
The request places responsibility on lawmakers to scrutinise the claims and determine 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 government debt management, such instruments can be used to formalise outstanding obligations and spread payments over an agreed period rather than settle the entire amount immediately in cash.
The proposed programme would therefore give the Federal Government a mechanism to recognise and schedule payment of the verified liabilities, while leaving the timing and terms of repayment subject to the approved arrangement and applicable public debt management rules.
