ABUJA — The Nigerian Government says it has commenced the long-delayed clearance of outstanding debts owed to contractors handling projects across ministries, departments, and agencies (MDAs), following months of mounting outrage from lawmakers and stakeholders.
The spokesperson for the Office of the Accountant-General of the Federation (OAGF), Bawa Mokwa, confirmed the development to DAILY POST on Monday, stating that payments had begun. However, contractors are yet to confirm receipt as of press time.
The issue of delayed payments, which has persisted since 2024, recently gained renewed attention after the Chairman of the House of Representatives Committee on Monitoring and Evaluation, Obi Aguocha, urged the Federal Government to act swiftly. In June, Senator Abdul Ahmed Ningi had also raised an alarm on the Senate floor, demanding an immediate investigation into the non-payment crisis.
Despite repeated pledges, the government failed to disburse funds until now — a situation that has sparked frustration among contractors and triggered ripple effects across Nigeria’s struggling economy.
Former President of the Real Estate Developers Association of Nigeria, Aliyu Wammako, lamented that the delays have crippled economic activities, stressing that contractors are not the only victims.
“Non-payment of funds to contractors by the Federal Government is a general problem for the whole of Nigeria,” he told DAILY POST. “It is the turnaround of funds between contractors, labourers, and professionals that forms the bedrock of the economy. FG should listen to the call already made by Senator Abdul Ningi and disburse payment immediately.”
Reports revealed that only a fraction of the N24.9 trillion approved for capital projects in 2024 was spent, while the N23.96 trillion allocated for 2025 has seen little implementation. The Senate has already extended capital budget implementation twice in seven months, highlighting the sluggish pace of execution.
The Tinubu administration recently defended itself against criticism that capital projects were skewed in favour of Lagos, insisting that developments are spread across all six geopolitical zones. However, DAILY POST findings show that none of the projects has reached 50% completion.
With the government now claiming to have initiated payments, contractors and stakeholders remain watchful — waiting to see if funds will finally trickle down after over a year of silence
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