The Senate has resolved to urge the Federal Government to appraise its indebtedness to the local contractors and propose a Framework/repayment plan for servicing of these debts.

This emanated from a motion sponsored by Senator Oluremi Tinubu and co-sponsored by five other Senators on the urgent need for the Federal Government to redeem Local Contractors Debts.

The Senate further noted that the economy is experiencing difficult times caused by a slump in oil prices and led to a negative Gross Domestic Products, adding that it has increased the rate of unemployment and increase in prices of goods in the country.

The Upper Chamber also identified that the Central Bank of Nigeria’s report on the Federal Government indebtedness to local economy and its effect is protracting the current economic situation, adding that further delay in servicing these debts may adversely affect business organisations.

The Senate referred to a publication in the Guardian Newspaper where it alleged that banks are being owed over N465 billion by oil importers alone and, these debts, the Senate opined could spell doom for the banking and financial services sectors.