President Bola Ahmed Tinubu has ordered the immediate settlement of the N1.5 trillion owed to local contractors and has set up a multi-ministerial committee to design a sustainable plan for clearing the backlog.
The directive followed a briefing at Monday’s Federal Executive Council meeting, where the Director-General of the Bureau of Public Procurement, Dr. Adebowale Adedokun, detailed the scale of the outstanding obligations. The President was said to be visibly displeased over the delays and insisted that the issue must be resolved without further excuses.
The new committee draws its membership from the finance, budget, works, education, housing, and marine economy ministries, as well as the Budget Office and the Federal Inland Revenue Service. They are expected to work jointly and present a unified strategy for funding and settling verified arrears. Tinubu also indicated that the government may consider borrowing if necessary to clear the debts.
The directive comes after weeks of mounting pressure from contractors who have repeatedly protested in Abuja over unpaid certified projects. The All Indigenous Contractors Association of Nigeria recently claimed that more than N4 trillion remains outstanding for 2024 capital projects, while the Ministry of Works has acknowledged a significant backlog tied to federal highway contracts. Much of the delay has been linked to overlapping budget cycles, with 2024 capital components now rolling into 2025.
To support its financing needs, the government has already obtained additional domestic borrowing of N1.15 trillion and raised $2.35 billion from an international Eurobond issuance.
In a related development, Works Minister Dave Umahi reaffirmed the Federal Government’s commitment to engaging reputable indigenous contractors for major infrastructure projects.
During an inspection of the Abuja–Keffi Highway reconstruction, he expressed satisfaction with the quality of work being delivered by JRB Construction Company Limited.
The project, expected to be completed in March, aims to reduce travel time and improve access for thousands of federal workers who reside in Nasarawa State.
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