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From Juliana Taiwo-Obalonye, Abuja
President Bola Tinubu has expressed grave displeasure over the persistent backlog of payments owed to federal contractors, estimated at about N1.5 trillion, and has constituted a high-level multi-ministerial committee to address the crisis.
Following the Federal Executive Council (FEC) meeting, Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed that the President was visibly upset after learning that more than 2,000 contractors, many indigenous, remain unpaid for completed projects. This backlog has caused significant financial hardships for contractors, including debts, asset seizures, unpaid wages and even health crises.
The President received a briefing from the Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun, detailing the magnitude of outstanding obligations.
Tinubu responded by directing the formation of a committee tasked with developing a comprehensive funding plan to clear the arrears promptly.
The committee members are: 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.
Onanuga explained that the committee’s mandate is to urgently review the payment delays, identify funding sources and present the President with a viable solution for releasing the owed funds.
Onanuga disclosed that President Tinubu emphasised the need for swift action and indicated that the government is open to borrowing—as a sovereign state—to settle verified contractor debts if necessary.
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“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.
This development follows mounting pressure from contractors, including the Concerned Contractors Owed by the Federal Government of Nigeria 2024 Capital Projects, who have appealed to the President and National Assembly for urgent intervention. The contractors decried the financial and emotional toll of the payment delays, describing the situation as unjust and inhuman.
The backlog has been attributed to overlapping budget years and financing challenges. The Ministry of Works earlier acknowledged the backlog and conducted a verification exercise earlier this year. Meanwhile, the National Assembly recently approved additional borrowing to cover financing gaps, complemented by the government’s international bond issuance.
At a press conference, the contractors under Concerned Contractors Owed by the Federal Government of Nigeria 2024 Capital Projects had appealed to President Tinubu and the National Assembly for urgent intervention on unpaid funds for completed projects overdue by over nine months.
Convener Jackson Nwosu and co-signatories—Secretary RQS MIQS Babatunde Seun, Peter Adhekugu, Chidi Kanu and O.F. Agada—decried dire hardships including debts, asset seizures, unpaid wages, health crises, deaths and suicides. Nwosu stated: “Contractors are drowning in debt… This delay is not only unjust—it is inhuman.”
They cited violations of the Public Procurement Act 2007 mandating budgetary provisions, urging transparency for national development.
