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, alsoreceived 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 News Agency of Nigeria (NAN) reports that 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.
