Contractors across Nigeria are increasingly voicing their frustrations over delayed payments for completed projects, urging Bola Tinubu to intervene and direct relevant ministries to settle outstanding debts.
In the Federal Capital Territory (FCT), contractors under the Association of Indigenous Contractors of FCT claim they are owed approximately ₦5.2 billion for projects ranging from sewage and drainage works to the maintenance of public infrastructure. Despite appeals, they report no response from the presidency, leaving many in financial distress.
Similarly, contractors associated with the Federal Ministry of Works have called on Tinubu to address their unpaid dues. They highlight that despite the release of ₦57 billion by the Accountant General's office for contracts funded through the national budget, payments have not been forthcoming.
The Federal Government acknowledges these concerns, with Minister of Works David Umahi stating plans to clear ₦1.5 trillion in debts owed to contractors. A verification committee has been established to screen and recommend payments, aiming for an automated and transparent process.
In a related development, Finance Minister Wale Edun announced the government's initiative to make direct payments to contractors, eliminating intermediaries to enhance transparency and accountability. This measure is part of broader efforts to boost the economy and ensure timely settlement of obligations.
Despite these initiatives, concerns persist. The Centre for Economic Reforms in Africa (CERA) warns that the government's failure to pay local contractors adversely affects the economy, leading to financial difficulties for businesses, loan defaults, and worker layoffs. CERA urges the government to prioritize payments and establish a clear repayment framework to rebuild trust and stimulate economic activity.
The collective outcry from contractors and economic analysts underscores the urgent need for the Nigerian government to address these financial obligations promptly, ensuring the stability and growth of the nation's economy.