N1.8tn Contractor Debt Payments in Nigeria: Reps Signal Imminent Release of Funds

There are strong indications that contractors owed by the Federal Government for capital projects may soon begin receiving payments, as members of the House of Representatives say disbursement could commence within the week. The development has raised cautious hope among thousands of contractors still awaiting settlement for work completed under the 2024 fiscal year.

The Federal Government had earlier earmarked about N1.8tn in the 2026 Appropriation Bill to clear outstanding liabilities. This includes N1.7tn owed for 2024 capital projects and an additional N100bn set aside for other verified debts owed to local contractors across the country.

Lawmakers, while confirming awareness of possible imminent releases, noted that the exact amount and structure of payments remain unclear. The North-West caucus leader, Sada Soli, said he had been informed of likely disbursement but could not confirm details, while other legislators, including Ikenga Ugochinyere and Terseer Ugbor, expressed mixed reactions—ranging from cautious optimism to frustration over repeated delays affecting constituency projects.

The prolonged debt crisis has significantly affected project delivery nationwide, with many contractors struggling financially after executing government jobs without payment. The situation has also sparked public protests, including demonstrations at the National Assembly Complex in late 2025 and early 2026, where aggrieved contractors demanded urgent intervention and accused the government of neglecting indigenous firms.

Despite repeated assurances from the Ministry of Finance and the Office of the Accountant-General, led by Wale Edun and Shamseldeen Ogunjimi respectively, actual payments have consistently failed to materialise on schedule. The delays have stalled infrastructure delivery and increased pressure on lawmakers, who continue to face growing frustration from constituents over uncompleted projects.

source: punch