President Bola Tinubu has established a high-level committee to address the backlog of unpaid federal contractors, a move he described as urgent following revelations that about 2,000 contractors are owed funds.
Briefing journalists after the Federal Executive Council (FEC) meeting in Abuja on Wednesday, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, said Tinubu expressed “grave displeasure” over the delay in payments and directed the committee to find a solution.
“He made it very clear he is not happy and wants a one-stop solution,” Onanuga said. “The mandate is to find the money and fix the problem of paying contractors.”
The committee comprises the Ministers of Finance and Coordinating Minister of the Economy, Wale Edun; Budget and Economic Planning, Atiku Bagudu; Works, Dave Umahi; Education, Olatunji Alausa; Housing, Ahmed Dangiwa; and Marine & Blue Economy, Gboyega Oyetola. Key government officials, including the Director-General of the Budget Office, Tanimu Kurfi, and the Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, are also members.
The committee is expected to sit, develop a plan, and report back to the President with proposals for allocating funds to settle contractor debts. Onanuga noted that Tinubu even suggested the government could borrow funds if necessary to clear the arrears.
The announcement comes amid mounting pressure from contractors over delayed payments for work completed in previous years. In September, the All Indigenous Contractors Association of Nigeria staged protests at the Finance Ministry in Abuja, claiming that over N4tn remained outstanding for certified 2024 capital projects.
The Works Ministry had previously acknowledged the backlog and launched a verification drive in January 2024 to address about N1.5tn owed on federal highway contracts. Payment delays have been compounded by budget carry-overs, with 2024 capital projects extending into 2025.
In November, the National Assembly approved an additional N1.15tn in domestic borrowing to plug a widened 2025 deficit, alongside the government’s $2.35bn Eurobond issuance to bolster financing.
