Outgoing President Muhammadu Buhari has revealed that Nigeria has issued debt securities worth $1.18 billion to settle various judgment debts.
In a public letter requesting parliamentary approval, President Buhari stated that his cabinet approved the settlement of judgment and general debts owed by the government through the issuance of promissory notes on March 29.
The judgment debts, incurred by federal ministries, departments, and agencies, amount to $566.75 million, 98.52 million pounds sterling ($124.35 million), and 226.28 billion naira ($491.92 million).
President Buhari did not provide further details regarding the specific nature of these debts.
Nigeria has been relying on borrowing to finance its budgets during the outgoing administration. The government will issue promissory notes to the debtors, which will be paid out gradually from the annual budget spending, as explained by President Buhari.
He stated in his letter to Senate President Ahmad Lawan, requesting approval, that the promissory notes will be redeemed over time through provisions in the budgets of the Federal Government of Nigeria. The Senate is expected to grant the necessary approval for this measure.
It's worth noting that Nigeria's total public debt increased from 39.56 trillion naira to 46.25 trillion naira ($103.1 billion) in 2022, as the government intensified borrowing to address the budget deficit amidst high global inflation.
