President Bola Tinubu has expressed strong displeasure over the growing backlog of debt, estimated at about ₦1.5 billion, owed to federal contractors.
In response, the President has established a high-level committee to address the bottlenecks and secure funds for repayment.
The President’s anger over the outstanding payments was disclosed by his Special Adviser on Information and Strategy, Bayo Onanuga, during a briefing with State House correspondents after the Federal Executive Council (FEC) meeting presided over by the President at the Council Chambers, Presidential Villa, Abuja.
Onanuga revealed that the President was deeply upset upon learning that approximately 2,000 contractors have yet to be paid.
“He made it very, very clear that he is not happy and wants a one-stop solution,” Onanuga said. “A key highlight of the FEC meeting is that the President expressed grave displeasure that contractors are being owed money.
“The Director-General of the Bureau of Public Procurement informed the President that about 2,000 contractors are owed, and this made him very, very upset.
“So, the ministers will look into the problem to find a real solution and identify the funds needed to pay the contractors.”
The presidential aide explained that the committee includes the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and Economic Planning, Atiku Bagudu; Minister of Works, Dave Umahi; Minister of Education, Olatunji Alausa; Minister of Housing, Ahmed Dangiwa; Minister of Marine and Blue Economy, Gboyega Oyetola; as well as the Director-General of the Budget Office of the Federation, Tanimu Kurfi; and the Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji.
“All members are to sit down, develop a plan as a committee, and present their solution to the President, particularly on how to allocate funds to pay contractors,” he stated.
Onanuga added that the Director-General of the Bureau of Public Procurement, Dr Adebowale Adedokun, had briefed the Council on the magnitude of the legacy debts, prompting the President’s directive.
“The mandate is to find the money and fix the problem of paying contractors. We need to look at what has been causing this situation. Why are contractors still owed even when revenue is reportedly increasing? What is driving this problem?
“That is why the President has set up a multi-ministerial committee. He even said that as a sovereign nation, we can borrow to pay these contractors. By the time the committee meets him today, we expect a solution,” Onanuga explained.
Contractors have for months decried delays in the payment of arrears for jobs completed since last year. In early September, the All Indigenous Contractors Association of Nigeria protested at the Finance Ministry, claiming that more than ₦4 trillion was outstanding for certified 2024 capital projects, a figure also presented during their demonstration at the National Assembly.
The Works Ministry had earlier acknowledged a significant backlog and launched a verification exercise in January 2024 aimed at clearing about ₦1.5 trillion owed on federal highway contracts.
In addition to the arrears, budget execution has been further complicated by carry-over projects, with capital components from the 2024 budget spilling deep into 2025.