Tinubu sets up ministerial panel to clear ₦1.5tn contractor debts

President Bola Tinubu has created a high-level committee to tackle the mounting backlog of unpaid federal contractors, after expressing what officials described as “grave displeasure” over delays affecting thousands of firms.

Speaking after Wednesday’s Federal Executive Council meeting, presidential adviser Bayo Onanuga said the President became visibly frustrated when briefed that roughly 2,000 contractors remained owed for completed projects.

According to him, Tinubu called for an immediate, centralized plan to identify the bottlenecks and unlock the funds required to settle verified debts. He also asked ministers to examine why payments have stalled despite improved government revenue.

A multi-ministry committee to map out solutions

The new committee brings together key figures from finance, budget planning, works, education, housing, and marine economy, alongside heads of the Budget Office and the Federal Inland Revenue Service. Their mandate is to review the size of the obligations, determine the funding options, and report back with a clear repayment strategy.

Onanuga noted that Tinubu even signaled willingness to borrow if necessary, emphasizing that the country cannot continue accumulating unpaid obligations for completed federal projects.

Contractors have mounted growing pressure in recent months, staging protests and citing arrears running into trillions for certified 2024 projects. The Works Ministry previously began a verification drive to clear about ₦1.5tn in outstanding road contract obligations, but legacy debts have continued to spill into the new fiscal year.

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Budget carry-overs deepening repayment delays

Part of the strain comes from Nigeria’s overlapping budget cycles. Capital components of the 2024 budget have been extended well into 2025, complicating execution. Lawmakers recently approved an additional ₦1.15tn in domestic borrowing to manage the widening 2025 deficit, even as the government returned to international markets to raise $2.35bn through Eurobonds.

Tinubu’s new committee is expected to consolidate these issues and present a path to stabilize payments to contractors who have warned that persistent delays are threatening ongoing federal projects.