President Bola Ahmed Tinubu has ordered the immediate settlement of the N1.5 trillion owed to local contractors by the Federal Government, signalling a decisive move to restore confidence in government project execution and reduce bottlenecks caused by mounting arrears. The directive was issued during Wednesday’s meeting of the Federal Executive Council (FEC), where the President also approved the creation of a multi-ministerial committee to craft a permanent funding solution for outstanding contractor payments.
According to Presidential spokesman Bayo Onanuga, President Tinubu was visibly dissatisfied with the prolonged debt situation and made his displeasure unmistakably clear during the session. Onanuga stated that the President was “visibly upset” after reviewing a detailed briefing on the scale of the government’s liabilities to contractors across multiple ministries.
“He made it very clear he was not happy and wants a one-stop solution,” Onanuga said in a post-meeting briefing. “The President expressed grave displeasure about the fact that contractors are being owed.”
The revelation was made after the Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, presented a comprehensive report outlining the size and distribution of the debts. The briefing reportedly highlighted long-standing obligations across sectors such as works, housing, education, marine services, and other ministries responsible for infrastructure and service delivery.
The scale of the outstanding payments, according to insiders, has become a persistent challenge for contractors who have been grappling with rising costs, inflation, and stalled projects. Some contractors have suspended work on major national projects due to lack of funds, while others continue operating at a loss while awaiting payment.
In response, President Tinubu directed the constitution of a multi-ministerial task team to clear the backlog and design a sustainable financing mechanism that will prevent future accumulation of debts. The committee is composed of key economic and sectoral leaders who will work collaboratively to ensure a comprehensive resolution.
Members of the committee include:
- Wale Edun, Minister of Finance and Coordinating Minister of the Economy
- Atiku Bagudu, Minister of Budget and Economic Planning
- Dave Umahi, Minister of Works
- Olatunji Alausa, Minister of Education
- Ahmed Dangiwa, Minister of Housing
- Gboyega Oyetola, Minister of Marine and Blue Economy
- Tanimu Yakubu, Director-General, Budget Office of the Federation
- Dr. Zacch Adedeji, Executive Chairman, Federal Inland Revenue Service (FIRS)
The committee’s mandate includes verifying all outstanding claims, categorising payments based on priority, and recommending funding strategies that could include budget reallocations, special intervention funds, debt instruments, or other financing models. Their work is expected to ensure that the Federal Government adopts a more predictable, transparent, and structured payment framework going forward.
Analysts have long warned that Nigeria’s contractor debt profile is a major impediment to national development, slowing down critical infrastructure projects and eroding trust between government and service providers. President Tinubu’s directive is therefore seen as a strong signal that the administration intends to address structural delays in the public procurement and payment systems.
Stakeholders in the construction, education, and marine sectors have welcomed the move, noting that timely payment will accelerate ongoing projects, ease contractor borrowing pressures, create jobs, and stimulate economic activity. Many believe that clearing the arrears will lead to faster project completion timelines across major federal roads, housing schemes, educational infrastructure, and maritime operations.
The multi-ministerial committee is expected to begin work immediately, with the President insisting on a coordinated and expedited approach to resolving the issue. The Federal Government is yet to announce a specific timeline for completing the payments, but officials say the directive reflects Tinubu’s broader commitment to fiscal discipline, transparency, and infrastructure delivery.
