•Tinubu
President Bola Ahmed Tinubu has directed the payment of N1.5 trillion owed to local contractors.
He raised a multi-ministerial panel to provide a permanent funding solution during yesterday’s Federal Executive Council (FEC) meeting, reports The Nation.
Presidential spokesman Bayo Onanuga said the president was ‘visibly upset’ about the situation.
Onanuga said: “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.”
According to him, the Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, briefed the Council on the magnitude of outstanding obligations, prompting the President’s directive to constitute a multi-ministerial team to clear the backlog and come up with a funding plan.
Members of the committee are: Minister of Finance and Coordinating Minister of the Economy Wale Edun, Budget and Economic Planning Minister Atiku Bagudu, Works Minister Dave Umahi, Education Minister Olatunji Alausa, Housing Minister Ahmed Dangiwa and Marine and Blue Economy Minister Gboyega Oyetola.
Others are the Director-General of the Budget Office of the Federation Tanimu Yakubu, and the Federal Inland Revenue Service (FIRS) Executive Chairman, Dr. Zacch Adedeji.
Onanuga added: “All of them are expected to sit down, develop a plan as a committee, and then go to the president to tell him the solution they have found in allocating funds to pay contractors.”
He explained that the President was determined to “find the money and fix the problem,” even hinting that the government could borrow to settle verified obligations if necessary.
The development followed weeks of pressure from contractors, who have repeatedly protested delays in payment of certified arrears.
In September, the All Indigenous Contractors Association of Nigeria (AICAN) claimed during demonstrations in Abuja and at the National Assembly that more than N4 trillion was outstanding for 2024 capital projects.
The Ministry of Works had previously acknowledged a significant backlog and launched a verification exercise in January last year to account for roughly N1.5 trillion in unpaid federal highway contracts.
The issue has been further complicated by overlapping budget cycles, with 2024 capital components rolling into 2025.
Last month, the National Assembly approved an additional N1.15 trillion in domestic borrowing to help cover a widened 2025 deficit.
The government also tapped into the international markets with a $2.35 billion Eurobond to bolster its financing needs.
Also on December 3, members of the AICAN got an audience with Edun on the second day of their protest at the Ministry of Finance.
The protesters demanded payment for the contracts they executed for the federal government in 2024.
Indigenous firms favoured for contracts
Also yesterday, Umahi expressed the federal government’s resolve to engage reputable indigenous contractors in the execution of critical infrastructural projects.
He dropped the hint during an inspection of the reconstruction of the Abuja-Keffi Highway.
The minister expressed satisfaction over the quality of the works on the road, which was awarded for reconstruction in October to JRB Construction Company Limited, an indigenous contractor.
The Abuja-Keffi dual carriageway project is a critical infrastructure development that aims to improve road connectivity and reduce travel time to Nasarawa State where most of the federal civil servants working in Abuja reside.
The project is expected to be completed in March.
The minister said: “This is the kind of organisation that will grow this country. Be assured that Mr. President is aware of what you are doing. And you are going to be paid to the last kobo.”
Umahi reiterated the government’s commitment to empowering indigenous companies.
He added: “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.
“The recognition of JRB Construction Company Limited is a testament to the company’s exceptional performance and commitment to delivering high-standard projects.
“The company’s reputation as one of the top indigenous construction companies in Nigeria has been reinforced, and it is expected to continue to play a critical role in the development of infrastructure in the country.”
