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HomeTop NewsCORRECTION: Nigeria issues N1.43 trln, $788.02 mln and €133.761 mln promissory notes...

CORRECTION: Nigeria issues N1.43 trln, $788.02 mln and €133.761 mln promissory notes to creditors in 5-year ~DMO

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By Samuel Bankole

Nigeria issued a total of N1.43 trillion worth of promissory notes to five categories of creditors, including local contractors, oil marketing companies, and exporters between December 2018 and September 2021, according to the Debt Management Office (DMO)

Other categories of creditors who are beneficiaries of the promissory notes are state governments and judgment creditors.

The schedule of the promissory notes released and sighted by Global Financial Digest showed that the country also issued another set of notes which includes $788.02 million and €133.761 million to the same set of creditors.

However, the debt office put the outstanding notes at N538.12 billion as of December 2022, which means the country has liquidated N888.94 billion of the debt by the end of last year.

Also, the government put the outstanding promissory notes in dollar terms at $784.23 million and €133.761 million as of the end of last year.

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A promissory note is a debt instrument that contains a written promise by one party (the note’s issuer or maker) to pay another party (the note’s payee) a definite sum of money, either on demand or at a specified future date.

A promissory note typically contains all the terms pertaining to the indebtedness, such as the principal amount, interest rate, maturity date, date and place of issuance, and issuer’s signature.

Nigeria issues promissory notes to state governments for refunds on road rehabilitations and reconstructions, local contractors for debt owing on projects executed, oil marketing companies for fuel subsidy, judgment creditors on court judgments against the government and for exporters on export incentives.

Nigeria’s debt stock rose to N44. 06 trillion in September 2022 from N42. 84 trillion in June of the same year, according to the details of the nation’s outstanding debt as of the third quarter of 2022.

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