President Bola Tinubu has asked the House of Representatives to approve the issuance of promissory notes totalling 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 Speaker Tajudeen Abbas during Tuesday's plenary. According to the Secretary to the Government of the Federation, Senator George Akume, the total amount involved is N269,446,402,822.56, following a review of outstanding obligations by relevant Ministries, Departments and Agencies.
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 the government's cash flow. Akume said the programme would admit only claims that had been verified and validated. The Secretary to the Government of the Federation explained 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.
The President seeks 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 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. 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.
Akume said the programme would enable the government to settle its obligations without imposing an immediate and disproportionate burden on public finances. The arrangement would support fiscal planning by spreading the associated repayment obligations over an appropriate period, consistent with the principles of prudent debt management. The government 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.
The Federal Government had previously used the Promissory Note Programme to settle inherited domestic debts and contractual obligations, Akume noted. 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. The proposed programme would 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.