Tinubu Orders Immediate Settlement of ₦1.5tn Contractor Debt, Sets Up Multi-Ministerial Panel
President Tinubu directed the immediate payment of ₦1.5 trillion in contractor debts and established a committee to prevent future payment delays.Summary
President Bola Ahmed Tinubu has ordered the immediate settlement of ₦1.5 trillion owed to local contractors, responding to growing pressure and a significant backlog of unpaid obligations. He expressed “grave displeasure” with the delays during a Federal Executive Council (FEC) meeting and has tasked a multi-ministerial committee with clearing the arrears and establishing a sustainable funding mechanism. The committee will develop a unified payment strategy and a funding plan for the President’s approval, with Tinubu indicating a willingness to explore additional borrowing if necessary. This directive follows protests by the All Indigenous Contractors Association of Nigeria (AICAN), which claimed over ₦4 trillion in unpaid debts, and a verification exercise by the Ministry of Works for approximately ₦1.5 trillion in highway contract claims. The government has recently approved additional borrowing and raised funds through Eurobonds to address the financial strain. Minister of Works, Dave Umahi, reaffirmed the government’s commitment to supporting capable indigenous construction firms, citing JRB Construction Limited as a model for local engineering excellence and assuring them of full payment.
(Source：Prima News)