The Federal Government's staggering N720 billion debt to local contractors underscores profound fiscal irresponsibility and betrayal of private sector partners funding critical infrastructure, experts charged on December 31, 2025. This massive backlog accumulated under successive regimes has crippled SMEs, stalled road/bridge projects, and eroded investor confidence amid Tinubu's reform pledges.
Outstanding verified claims span Ministries of Works, Power, and Transport, with contractors like those on Lagos-Ibadan Expressway owed since 2021 despite budget provisions diverted elsewhere. Official audits reveal padded invoices and ghost payments, but Treasury Single Account delays genuine disbursements, forcing firms into bankruptcy or imported material defaults.
SMEs, employing 80% of Nigeria's workforce, face collapse as banks blacklist defaulters while governors like Umahi tout federal projects. The debt fuels inflation via cost escalations and deters FDI, contradicting NRS tax reforms promising MSME relief from January 2026. Critics slam Umahi's Southeast overtures as tone-deaf amid contractors' agony.
Stakeholders demand prioritized payments via dedicated intervention funds, transparent verification, and penalties for dishonest officials, warning fiscal suicide without action. As 2027 looms, this "moral burden" tests Tinubu's anti-corruption credentials against Buhari-era legacies haunting APC's renewal narrative.