President Bola Ahmed Tinubu has expressed deep concern over the backlog of federal contract payments, reportedly totalling about ₦4 trillion owed to over 2,000 contractors.
At the Federal Executive Council (FEC) meeting in the Presidential Villa, Abuja, Tinubu directed the immediate formation of a high-level committee to address the bottlenecks and fast-track payments.
His Special Adviser on Information and Strategy, Bayo Onanuga, disclosed this to State House correspondents on Monday.
Onanuga said the President was “very, very upset” upon learning the extent of the indebtedness.
“He made it very clear that he is not happy and wants a one-stop solution. The ministers are to identify the causes and allocate funds to pay contractors without further delay,” he stated.
The multi-ministerial committee, chaired by the Ministers of Finance and Budget, includes key members from Works, Education, Housing, Marine & Blue Economy, the Budget Office, and the Federal Inland Revenue Service.
Onanuga explained that the committee is mandated to develop a concrete plan and report back to the President with actionable solutions.
“The mandate is to find the money and fix the problem of paying contractors. The President even said that, as a sovereign country, we could borrow to settle these obligations if necessary,” he added.
The payment backlog has been a source of tension among contractors, many of whom have staged protests over delayed arrears for works completed since 2024.
In September, the All Indigenous Contractors Association of Nigeria demonstrated at the Finance Ministry in Abuja, highlighting the ₦4 trillion owed for certified 2024 capital projects.
The Works Ministry had previously acknowledged the backlog and launched a verification drive early last year to clear the outstanding payments on federal highway contracts.
However, budget overlaps and carry-over funds extending 2024 capital projects into 2025 have complicated execution, contributing to delays.
Onanuga assured that with the committee now in place, a workable solution to clear the debts was expected soon.
“By the time the committee reports to the President, I believe a solution will be found to ensure that contractors are paid without further delay,” he said.
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