Tinubu contractor debt backlog triggers a high-level committee as the President orders urgent action to resolve unpaid federal contracts

President Bola Tinubu on Wednesday in Abuja expressed grave displeasure over the extensive backlog of unpaid federal contractors and announced the creation of a high-level committee to resolve long-standing bottlenecks and secure funds for repayments.

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The directive followed a Federal Executive Council briefing during which the Director-General of the Bureau of Public Procurement disclosed that nearly 2,000 contractors remain unpaid.

Special Adviser on Information and Strategy Bayo Onanuga told journalists that President Tinubu was visibly upset upon learning the scale of the debt, describing the situation as unacceptable and demanding what he called a one-stop solution.

Onanuga said the President instructed ministers to immediately investigate the root causes of the arrears and produce a clear repayment plan.

The newly formed committee includes the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Budget and Economic Planning, Atiku Bagudu; the Minister of Works, Dave Umahi; the Minister of Education, Olatunji Alausa; the Minister of Housing, Ahmed Dangiwa; and the Minister of Marine and Blue Economy, Gboyega Oyetola.

They will work alongside the Director-General of the Budget Office, Tanimu Kurfi, and the Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji.

The group is expected to develop a coordinated strategy and present its recommendations directly to the President.

Onanuga said the President questioned how the government could report rising tax revenues while continuing to owe contractors substantial sums.

He added that Tinubu suggested that borrowing could be considered if necessary to clear the backlog, underscoring the urgency of the problem and the need for decisive action.

Pressure has been mounting for weeks as contractors publicly complained about payment delays for completed 2024 projects.

In September, the All Indigenous Contractors Association of Nigeria protested at the Ministry of Finance, alleging more than four trillion naira in outstanding arrears.

A similar figure was cited during a separate demonstration at the National Assembly.

The Ministry of Works had earlier acknowledged a large volume of legacy debts, launching a verification exercise in January 2024 to assess roughly 1.5 trillion naira owed on federal highway contracts.

Budget execution has become more complex with overlapping fiscal cycles, as the government extended 2024 capital components well into 2025 to accommodate delayed project payments.

On 12 November, lawmakers authorised an additional 1.15 trillion naira in domestic borrowing to close a widening 2025 budget deficit, following the government’s successful Eurobond issue that raised 2.35 billion dollars.

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The developments underline the persistent strain on public finances and the magnitude of the challenge facing the committee charged with resolving the contractor debt backlog.