The Federal Executive Council, FEC, has approved a new validation process, promissory note and debt issuance programme to resolve a number of federal government obligations to contractors, state governments and employees as proposed by the Ministry of Finance.
The approval will be followed by a request to the National Assembly to approve the programme ahead of implementation.
In March 2017, the Economic Management Team, under the leadership of Osinbajo mandated the Minister of Finance to chair a committee that would establish a process to confirm the validity of inherited federal government obligations, and propose a mechanism to resolve them. 
According to a statement from the ministry of finance, the obligations consist of dues owed to State governments, oil marketers, power generation and distribution companies, suppliers and contractors to federal parastatals and agencies.
It also includes payments due under the Export Expansion Grant, EEG, outstanding judgement balances as well as pension and other benefits to federal government employees. Some of the obligations date back to 1994. 
It is believed that the resolution would significantly enhance liquidity in critical sectors of the economy. 
“Following an exhaustive process of reconciliation, the committee has been able to provisionally confirm a discounted total of N2.7 trillion of obligations, consisting of N740 billion of outstanding pensions and promotional salary arrears,” the statement read in part.
It also said that supplier and contractor obligations will be resolved through a strict process of final validation, following which those confirmed will be settled through the issuance of liquid promissory notes (ten-year tenure) phased over a three-year period to minimise impact on liquidity and with preference given to those willing to offer the largest discounts.
The stated added that the obligations will be incorporated into the Medium- Term Expenditure Framework by the Ministry of Budget and National Planning.