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FG seeks senate approval for N10bn promissory note for Kogi

The Federal Government on Tuesday sought the approval of the Senate for issuance of N10.69 billion Promissory Note for refund on federal projects executed by Kogi Government.

The request is contained in a letter addressed to President of Senate, Dr Ahmad Lawan by President Muhammadu Buhari.

Buhari, in the letter read at plenary, requested for the resolution of the National Assembly for the issuance of the promissory note to the state government.

“The request is hinged on the promissory note programme and bond issuance to settle inherited local debt and contractual obligations of the federal government.

“This is base on my request for the resolution of the national assembly approving the establishment of a promissory note programme and the bond issuance to settle inherited local debts and contractual obligation by the federal government.

“The 8th National Assembly passed resolutions approving issuance of promissory notes to refund state governments for projects executed on behalf of federal government.”

He said that National Assembly had approved the issuance of promissory notes to 24 out of the 25 state that requested.

According to him, only Kogi with an outstanding claim of N10.069 billion is yet to be approved.

“Accordingly, the senate is hereby requested to kindly approve the issuance of promissory note in the sum of N10.69 billion to Kogi State for projects executed on behalf of the federal government.”

Lawan, however, referred the matter to Committee on Local Debts for further legislative input and report back to senate in two weeks time.

Also, the senate having resolved into the Committee of the Whole, also received and considered the report of the Committee on Petroleum (Upstream) on the amendment of Deep Offshore and Inland Basin Production Sharing Contract (PSC) Bill 2019.

The bill, which was designed to ensure recovery of revenues due to Nigeria from the PSC, has 18 clauses.

The bill was passed by senate after a clause by clause review by the senate committee of the whole.

The clause by clause review resulted in the amendment of clause 16 which brought the periodic review of the act from 10 years recommended by the committee to eight years.

The clause 17, which recommend a N50 million fine for violation of the act by operators was amended following a motion by Sen. Ovie Omo-Agege (APC-Delta).

N500 million was approved as fine and five years imprisonment for would-be-offenders.

Following amendment to the clauses, the bill was read for the third time and passed by senate.

Lawan, commenting on the bill, said it would generate 1.5 billion dollars for Nigeria in 2020.

He thanked President Muhammadu Buhari for sponsoring the bill.

He also commended senators and stakeholders like the Nigerian National Petroleum Corporation (NNPC) for their inputs in the amended bill.



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