Senate approves N338b for states to pay inherited debts


The senate yesterday approved the release of N338 billion to states to settle and inherited local debts and contractual obligations.

Out of the total amount, Delta and Taraba states are to share N102.3 billion.

The funds approved for the two states are reimbursement for projects they executed on behalf of the federal government.

About N43.5 billion will also be disbursed on contractual liabilities.

Another N193 billion was approved for outstanding claims of 269 verified companies.

Further breakdown of the N102.3 billion showed that Delta State will receive N67.9 billion and Taraba State, N34.3 billion, as refunds for expenses incurred on federal government projects.

The approval followed the adoption of the report of the senate ad-hoc committee on promissory note programme and bond issuance.

The chairman of the committee and deputy senate chief whip, Mr. Francis Alimikhena, presented the report.

Alimikhena explained that the N43.5 billion was approved the settlement of contractual liabilities.

The breakdown is as follow: N37 billion to Setraco Nigeria Limited; N4 billion to Bouygues Nigeria Limited; N346 million to Simidia S & I International Company Limited; N210 million to Hamdala Homes & Agency Limited as well as N960 million to Lejmej Nigeria Limited.


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