THE administration of President Bola Tinubu will likely spend about N187.32bn to settle debts owed to local contractors this year.
The debts were listed as promissory notes in a document titled, ‘Schedule of promissory notes issued by category as at September 30, 2022’ by the Debt Management Office.
According to Investopedia.com, a promissory note is a debt instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date.
Section 4 of the Government Promissory Notes Act states that government promissory notes are paid from the general revenue and assets of the federation.
It read in part, “The principal sums and interest represented or secured by any government promissory notes are hereby charged upon and shall be payable out of the general revenue and assets of the federation.”
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