The federal government on Wednesday approved the sum of N2.7 trillion for the payment of some discounted obligations, part of which had accumulated in the past two decades.
The approval was given at the Federal Executive Council meeting held on Wednesday and chaired by the Acting President, Yemi Osinbajo.
Briefing State House Correspondents after the FEC meeting, the Minister of Finance, Kemi Adeosun said the money would be paid through bonds and promissory note issuance.
This, according to her, is to settle long outstanding dues and to stimulate economic activity.
The debts to settle, she said included N740 billion of outstanding pensions and promotional salary arrears (not discounted).
Included too is N1.93 trillion (discounted) of other obligations including dues to federal government contractors and suppliers.
Giving background details, Salisu Danbatta of the Minsitry of Finance, said the debt issuance programme was to resolve some inherited and long outstanding federal government obligations to contractors, state governments and employees.
According to him, this step would be followed by a request which shall be sent to the National Assembly for approval before implementation.
