Olayiwola Matthew
President Bola Ahmed Tinubu has ordered the settlement of N1.5 trillion owed to local contractors, directing the establishment of a multi-ministerial panel to produce a permanent solution to the persistent delays in contractor payments.
Presidential spokesman Bayo Onanuga disclosed that the President issued the directive during Wednesday’s Federal Executive Council (FEC) meeting, where he was reportedly “visibly upset” over the mounting unpaid obligations.
According to Onanuga, Tinubu expressed “grave displeasure” at the continued indebtedness to contractors and demanded a one-stop, lasting solution to the problem.
He said the Council received a detailed briefing from the Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, on the scale of outstanding debts, which prompted the President to constitute a special committee to clear the backlog and devise a long-term funding mechanism.
Onanuga said the team is expected to immediately sit, design a clear payment framework, and report back to the President with a funding plan. Tinubu, he added, is determined to “find the money and fix the problem”—even if it requires borrowing to settle verified debts.
The directive comes amid rising agitation from contractors across the country. In September, the All Indigenous Contractors Association of Nigeria (AICAN) claimed over N4 trillion in unpaid obligations tied to 2024 capital projects, staging protests in Abuja and at the National Assembly.
The Ministry of Works had also confirmed a major backlog and commenced a verification exercise last year to validate around N1.5 trillion in unpaid highway contract claims.
Complications from overlapping budget cycles have worsened the problem, with many 2024 capital components spilling into the 2025 fiscal year. The National Assembly recently approved N1.15 trillion in domestic borrowing to support the expanded 2025 deficit, while the Federal Government also raised $2.35 billion through a Eurobond issuance to meet financing needs.
On December 3, protesting contractors secured a meeting with Finance Minister Edun, where they again demanded prompt payment for completed 2024 projects.
FG to Prioritise Indigenous Contractors
Meanwhile, the Minister of Works, Dave Umahi, has restated the Tinubu administration’s commitment to awarding major infrastructural projects to competent indigenous firms.
During an inspection of the Abuja-Keffi Highway reconstruction—being handled by the Nigerian company JRB Construction Limited—Umahi commended the quality of work and vowed that reputable local firms will be fully supported.
He assured the contractors:
“Be assured that Mr. President is aware of what you are doing. And you are going to be paid to the last kobo.”
Umahi said empowering indigenous companies remains a key priority, adding:
“We will continue to support and empower indigenous companies that have the capacity to deliver high-standard projects and contribute to the growth and development of the country.”
He described JRB Construction as a model of excellence, noting that its performance reinforces its status as one of Nigeria’s leading home-grown construction firms with a growing role in national infrastructure development.