The Federal Executive Council on Wednesday approved the issuance of promissory notes for the settlement of debts owed local contractors worth N740 billion, Vanguard reports.

The Minister of Finance, Mrs Kemi Adeosun, gave the hint while addressing newsmen after the Federal Executive Coucil meeting, adding that debts to GENCOS, DISCOs and state governments stood at N193.69 billion.

“The Memorandum that the Council approved was for the issuance of a promissory note programme to settle inherited debts to local contractors and state governments on the part of Federal Government,” she said.

She said that because of the government debts, there was illiquidity in such places as the power sector, which had reversal of tariff, leading to a debt to GENCOs of about N495 billion. She said that the debt had held back investments in the power sector.