President Tinubu has ordered for the immediate settlement of ₦1.5tn Contractor Debt and set up Multi-Ministerial Panel.
NewsOnline Nigeria reports that President Bola Ahmed Tinubu has directed the immediate settlement of ₦1.5 trillion owed to local contractors and ordered the creation of a multi-ministerial committee to end the recurring delays in contractor payments.
Presidential spokesman Bayo Onanuga revealed that Tinubu gave the instruction during Wednesday’s Federal Executive Council (FEC) meeting, where he was said to be “visibly upset” over the growing backlog of unpaid obligations.
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According to Onanuga, the President expressed “grave displeasure” at the continued indebtedness and demanded a comprehensive, lasting framework to resolve the issue once and for all.
The Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, reportedly briefed the Council on the scale of outstanding liabilities. The presentation prompted Tinubu to set up a special panel tasked with clearing the arrears and designing a sustainable funding mechanism.
The committee will immediately begin work on a unified payment strategy and submit a funding plan to the President. Tinubu, Onanuga noted, is committed to “finding the money and fixing the problem”, even if that requires additional borrowing to settle verified claims.
The directive comes amid growing pressure from contractors nationwide. In September, the All Indigenous Contractors Association of Nigeria (AICAN) claimed more than ₦4 trillion in unpaid capital project debts and staged protests in Abuja and at the National Assembly.
The Ministry of Works had earlier confirmed a major backlog and launched a verification exercise for about ₦1.5 trillion in outstanding highway contract claims. Delays caused by overlapping budget cycles have further complicated payments, with many 2024 capital components carried into the 2025 fiscal year.
To ease the pressure on public finances, the National Assembly recently approved ₦1.15 trillion in domestic borrowing for the expanded 2025 deficit, while the Federal Government also raised $2.35 billion from a Eurobond issuance.
On December 3, aggrieved contractors met with Finance Minister Wale Edun to once again demand prompt payment for completed 2024 projects.
FG Reaffirms Support for Indigenous Contractors
Meanwhile, the Minister of Works, Dave Umahi, has reiterated the Federal Government’s commitment to prioritising capable indigenous construction firms for major infrastructural projects.
Speaking during an inspection of the Abuja–Keffi Highway reconstruction executed by Nigerian firm JRB Construction Limited, Umahi praised the quality of work and assured the company of full government support.
“Mr. President is aware of what you are doing, and you will be paid to the last kobo,” he said.
Umahi added that promoting local contractors remains a key policy direction of the Tinubu administration, emphasising that indigenous companies with proven competence will continue to receive major project allocations.
He described JRB Construction as a model for home-grown engineering excellence, noting that its work further cements its role in Nigeria’s infrastructure development landscape.
