FG to offset N2.7tn debt accrued over two decades to bolster economy

The Federal Executive Council on Wednesday approved a proposal presented by the Ministry of Finance to offset accumulated Federal Government’s debts totalling N2.7tn.

The debt had been accumulated over the last two decades and included those being owed contractors, state governments and its employees, according to Minister of Finance Kemi Adeosun.

Adeosun said offsetting some of the debts would significantly enhance liquidity in critical sectors of the economy.

She said after the FEC meeting presided over by Acting President Osinbajo that Nigeria “cannot get our economy moving at the pace we need to if we do not address the legacy issues we have inherited, which act as a significant drag on economic activity.”

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The minister further stated that with the council’s approval, the government would make a request to the National Assembly to approve the programme ahead of implementation.

The debts would be paid through bond and promissory note issuance over a three-year period.