President Bola Ahmed Tinubu on Wednesday established a high-level committee to resolve the lingering backlog of payments owed to federal contractors, expressing “grave displeasure” over the mounting debt estimated at about N1.5 trillion.
Speaking to journalists at State House, Abuja, after the Federal Executive Council (FEC) meeting in Abuja, the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the President was visibly upset after learning that more than 2,000 contractors are being owed for completed projects.
“He made it very, very clear he is not happy and wants a one-stop solution. An important highlight in the course of the FEC meeting is that the President expressed grave displeasure about the fact that contractors are being owed money”, Onanuga said.
According to him, the Director-General of the Bureau of Public Procurement (BPP), Dr Adebowale Adedokun, briefed the Council on the magnitude of outstanding obligations, prompting the President’s directive to constitute a multi-ministerial team to design a funding plan and clear the backlog.
The committee comprises 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; and the Minister of Marine and Blue Economy, Gboyega Oyetola.
Also included are the Director-General of the Budget Office of the Federation, Tanimu Yakubu, and the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji.
“All of them are supposed to sit down, develop a plan as a committee, and then go to the President to tell him the solution they have found in allocating funds to pay contractors,” Onanuga said.
He added that the President was determined to “find the money and fix the problem,” even hinting that the government could borrow to settle verified obligations if necessary.
“He even said that, as a sovereign country, we can go and borrow to pay those contractors,” the presidential aide noted.
The remarks follow weeks of pressure from contractors, who have repeatedly protested delays in payment of certified arrears.
In September, the All Indigenous Contractors Association of Nigeria claimed more than N4 trillion was outstanding for 2024 capital projects during demonstrations in Abuja and at the National Assembly.
The Ministry of Works had previously acknowledged a significant backlog and launched a verification exercise in January 2024 to account for roughly N1.5 trillion in unpaid federal highway contracts.
The issue has been further complicated by overlapping budget cycles, with 2024 capital components rolling into 2025.
In November, the National Assembly approved an additional N1.15 trillion in domestic borrowing to help cover a widened 2025 deficit, even as the government tapped international markets with a $2.35 billion Eurobond to bolster its financing needs.
The Nation
