•Taiwo Oyedele
Contractors and officials of MDAs have called for action by the newly appointed Minister of Finance, Taiwo Oyedele, on backlog of unpaid government obligations.
Stakeholders in the public and private sectors said the minister faces an immediate test of leadership, amid calls for intervention to address liquidity constraints threatening critical sectors of the economy, reports The Nation.
Contractors, many of whom financed government projects through bank loans, said prolonged delays have pushed them into financial distress. Many warned that failure to act could trigger mass protests.
“We have delivered on contracts, yet payments are stalled. Many firms are on the brink, and patience is running out,” a contractor involved in federal infrastructure projects said.
Officials in MDAs also decried persistent funding gaps, particularly in sectors as power, defence and healthcare.
A senior civil servant said irregular budget releases have continued to hamper service delivery and project execution.
“The banking sector is exposed to the crisis. Financial institutions confirmed a rise in non-performing loans linked to government contracts, with some lenders moving to recover assets and initiating legal proceedings against defaulting contractors.
“This is no longer isolated. It is becoming systemic, with implications for financial stability,” a banking executive said.
Analysts said the situation is a critical challenge for Oyedele, whose appointment has generated high expectations due to his private sector experience.
While some stakeholders anticipate action, others caution that entrenched bureaucratic processes could slow reforms.
An analyst noted: “There is urgency, but the system can be a constraint. The expectation, is that he restores confidence.”
Attention also turned to his predecessor, Wale Edun, whose handling of domestic debt drew mixed reactions.
While critics faulted the slow pace in settling obligations, others argued the approach was aimed at managing inflation and controlling liquidity.
An economist said: “There is a notion delaying payments contain inflationary pressures. But many believe administrative bottlenecks played a bigger role than policy.”
The debate comes amid concerns over Nigeria’s fiscal position, with stakeholders questioning the disconnect between official claims of improving foreign reserves and GDP growth, and the rising burden of both domestic and external debt.
However, several economists argue that settling local debts could deliver immediate economic benefits.
Injecting funds into contractors, they say, would boost purchasing power, revive stalled projects and stimulate broader economic activity.
For Oyedele, the challenge lies in balancing fiscal discipline with the urgent need to ease financial pressures across sectors.
Stakeholders insist that his early decisions will shape confidence in the government’s fiscal direction.
