President Bola Ahmed Tinubu has ordered the payment of N1.5 trillion owed to local contractors and set up a high level inter ministerial panel to tackle long standing delays in settling verified debts. The decision was taken at Wednesday’s Federal Executive Council meeting after the President was briefed on the scale of outstanding obligations.
Presidential spokesman Bayo Onanuga said Tinubu was visibly unhappy that contractors had been left unpaid and demanded a “one stop” solution to the problem. Director General of the Bureau of Public Procurement, Dr Adebowale Adedokun, had earlier presented details of the backlog, prompting the President to constitute a special committee to clear the arrears and propose a sustainable funding plan.
The committee includes Finance and Economy Minister Wale Edun, Budget and Economic Planning Minister Atiku Bagudu, Works Minister Dave Umahi, Education Minister Olatunji Alausa, Housing Minister Ahmed Dangiwa and Marine and Blue Economy Minister Gboyega Oyetola. Others are Budget Office Director General Tanimu Yakubu and Federal Inland Revenue Service Chairman Dr Zacch Adedeji.
Onanuga said the team is expected to work out a detailed payment strategy and report back to the President. Tinubu signalled readiness to “find the money and fix the problem,” even suggesting that government could borrow to clear verified obligations if required.
The push follows weeks of protests by contractors over unpaid certified claims. In September, the All Indigenous Contractors Association of Nigeria alleged that more than N4 trillion remained unpaid for 2024 capital projects during demonstrations in Abuja and at the National Assembly.
The Ministry of Works had earlier admitted to a major backlog and launched a verification exercise last year to capture about N1.5 trillion in unpaid federal highway contracts. Overlapping budget cycles, with parts of the 2024 capital budget rolling into 2025, have further complicated the issue.
To help close a wider 2025 fiscal gap, the National Assembly recently approved an extra N1.15 trillion in domestic borrowing. The Federal Government also raised 2.35 billion dollars through a Eurobond issuance to support its financing needs.
On December 3, members of AICAN met Wale Edun at the Ministry of Finance on the second day of their protest to press for payment of 2024 contract claims. They demanded that government honour its obligations to indigenous contractors who had executed approved projects.
At the same time, Works Minister Dave Umahi has restated the administration’s resolve to prioritise reputable local contractors for key infrastructure jobs. During an inspection of the Abuja Keffi highway reconstruction being handled by indigenous firm JRB Construction Company Limited, he expressed satisfaction with the quality of work and promised timely payment.
Umahi said engaging competent Nigerian firms is vital for economic growth and job creation. He assured JRB and other serious local contractors that the President is aware of their efforts and that they will be paid to the last kobo once claims are verified.
He added that government will keep supporting indigenous companies that can deliver high standard projects and deepen Nigeria’s infrastructure base. According to him, the recognition of JRB’s work reinforces its status as one of the country’s leading construction firms and underlines the role of local players in national development.
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