FG Moves to Settle N1.8tn Contractors’ Debt

Nigeria’s federal contractors may finally see their money this week. The House of Representatives indicates that the executive branch will soon release funds to address a massive N1.8tn backlog of unpaid debts. These liabilities stem from capital projects executed during the 2024 fiscal year. Lawmakers expect the first tranche of payments to hit bank accounts by Friday. Cautious optimism now replaces the stony silence that has defined the treasury for months.

The 2026 Appropriation Bill contains a specific N1.7tn allocation for these 2024 capital projects. An additional N100bn sits in the budget to settle other local debts. Indigenous firms have borne the brunt of this fiscal delay for two years. Many took high-interest loans to deliver infrastructure, only to be met with empty promises. The government must now prove its commitment to these local partners.

Sada Soli, who leads the North-West caucus, confirms that the machinery for payment is moving. He notes that while the intent is clear, the exact figures remain a closely guarded secret. This lack of transparency has fueled anxiety among the business community. Contractors need more than vague assurances to satisfy their creditors. The credibility of the national budget rests on these disbursements.

The delay has crippled more than just private bank balances. Lawmakers like Ikenga Ugochinyere report that stalled constituency projects have damaged their reputations. Voters rarely distinguish between a legislative facilitator and the executive paymaster. When a project stops, the local representative usually takes the blame. This friction has created a tense atmosphere within the National Assembly.

The Ministry of Finance has spent much of the past year managing expectations without spending cash. Both Wale Edun and the Accountant-General previously hinted at payments that never arrived. This pattern of failed promises led to desperate measures by those owed. Protests rocked the National Assembly complex as recently as January. Contractors parked their grievances at the very door of the government.

Nigeria cannot afford to keep its builders in the cold. Unpaid debts act as a handbrake on economic growth and infrastructure development. If these payments do not materialise by the weekend, the government faces a deeper crisis of trust. For now, the contractors wait for the alert that proves the treasury is open.