TheCable

Ahmed Idris, accountant general of the federation, says the federal government has cleared the promotion arrears of workers in its ministries, departments and agencies.

Idris, who was represented by Mohammed Usman, director of funds in the office of the accountant general of the federation, said the federal government paid N34.2 billion to do this.

Usman and Kemi Adeosun, minister of finance, appeared before the senate ad-hoc committee on promissory note programme and bond issuance.

The committee is chaired by Francis Alimikhena, deputy chief whip.

“These payments were made to the accounts of the beneficiaries in the MDAs after detailed verification of all documents attached as proof of promotion,” he said, adding that the payment process is still ongoing.

On her part, Adeosun said the federal government will settle the inherited debts and contractual obligations to local contractors between 2006 and 2015.

She explained that the debts, which includes the terminal benefits of ex-Nigerian Airways workers, would be repaid through promissory notes and bonds issuance.

She said the terminal benefits of ex-Nigerian Airways workers were reconciled and agreed at N45 billion after verification.

“There has been a misconception in the media that the president had approved the payment of N45 billion terminal benefits to the workers. There is no presidential approval and no appropriation yet for the payment of N45 billion to the ex-workers,” she said.

“The federal government is working towards settling these inherited debts. The small and medium scaled enterprises are the lifeline of our nation. The federal government will be stimulating the economy by paying these legacy debts.”

She listed the debts to include obligations to pensioners and salary & promotion arrears to civil servants; obligations to contractors and suppliers who in turn, owe banks increasing the quantum of non-performing loans, and unpaid electricity bills by the ministries, departments and agencies (MDAs).

Others are: exporters owed funds under the Export Expansion Grant Scheme and unpaid refunds due to state governments in respect of projects undertaken on behalf of the federal government.