- Sets Up Inter-Ministerial Panel
Sets Up Inter-Ministerial PanelPresident Bola Ahmed Tinubu has ordered the immediate payment of N1.5 trillion owed to local contractors and constituted an inter-ministerial panel to provide a permanent solution to recurring payment delays.
Presidential spokesman Bayo Onanuga said the President was “visibly upset” during Wednesday’s Federal Executive Council (FEC) meeting after being briefed on the scale of outstanding obligations.
“He made it very clear he was not happy and wants a one-stop solution. The President expressed grave displeasure about the fact that contractors are being owed,” Onanuga said.
The Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, had earlier outlined the magnitude of the debt burden, prompting Tinubu to activate a multi-agency response.
Committee Members
The special committee includes:
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Minister of Finance and Coordinating Minister of the Economy, Wale Edun
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Minister of Budget and Economic Planning, Atiku Bagudu
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Minister of Works, Dave Umahi
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Minister of Education, Olatunji Alausa
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Minister of Housing, Ahmed Dangiwa
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Minister of Marine & Blue Economy, Gboyega Oyetola
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DG, Budget Office of the Federation, Tanimu Yakubu
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FIRS Chairman, Dr. Zacch Adedeji
The team is expected to design and submit a funding plan to clear all verified arrears.
Onanuga added that Tinubu is determined to “find the money and fix the problem,” including the possibility of borrowing to offset certified debts.
Contractors’ Protests and Rising Debt Pressures
The directive follows weeks of pressure from contractors over delayed payments.
In September, the All Indigenous Contractors Association of Nigeria (AICAN) claimed that over N4 trillion in 2024 capital project arrears remained outstanding.
The Ministry of Works also confirmed ongoing verification of about N1.5 trillion in unpaid federal highway contracts.
Budget rollover complications between 2024 and 2025 have further deepened the backlog. Last month, lawmakers approved N1.15 trillion in additional domestic borrowing to manage the widening deficit, while the government also tapped $2.35 billion from Eurobond markets.
On December 3, AICAN protesters met with Minister Edun at the Ministry of Finance, repeating demands for immediate payment for contracts executed in 2024.
FG Prioritises Local Contractors as Abuja-Keffi Highway Nears Completion
Also on Wednesday, Minister of Works Dave Umahi reiterated the Federal Government’s commitment to prioritising qualified indigenous firms in major infrastructure projects.
Speaking during an inspection of the Abuja-Keffi Highway reconstruction, Umahi praised the work of JRB Construction Company Limited, an indigenous contractor handling the project awarded in October.
The dual carriageway, due for completion in March, is expected to ease congestion and reduce travel time for thousands of federal workers commuting from Nasarawa State into Abuja.
“This is the kind of organisation that will grow this country… And you are going to be paid to the last kobo,” Umahi assured.
He added that the government will continue to promote reputable local companies capable of delivering high-quality infrastructure, strengthening Nigeria’s construction sector and supporting national development.
Emma Tochi ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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