Lawmakers hint at pending settlement of N1.8 trillion owed to contractors

Contractors awaiting payment for capital projects executed in the 2024 fiscal year may receive part payment soon, as House of Representatives members anticipate funds to be released this week.

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The 2026 Appropriation Bill has allocated N1.8tn to settle outstanding liabilities to contractors, comprising N1.7tn for 2024 capital projects and N100bn for other local contractor debts.

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Lawmakers, who spoke separately, expressed cautious optimism about the impending payments, but declined to disclose the amount likely to be disbursed.

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The development comes amid mounting pressure on the Federal Government over its failure to clear verified debts owed to indigenous contractors, who have complained of severe financial strain after delivering projects across the country.

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Sada Soli, Leader of the North-West caucus in the House, confirmed awareness of imminent payments, but said details remained unclear, stating "I am aware of it, but I don’t know how much they’re talking and committing to the implementation of the budget".

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Soli, who represents Jibia/Kaita Federal Constituency of Katsina State, awaits further information on the payments.

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Ikenga Ugochinyere, lawmaker representing Ideato North/Ideato South Federal Constituency of Imo State, lamented the impact of delayed payments on constituency projects and lawmakers’ credibility before their constituents.

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Ugochinyere expressed hope that payments would be made soon, saying "Lawmakers have suffered from delays in paying contractors working to execute constituency projects, but I have been told certain payments will likely be made this week."

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Terseer Ugbor, representing Kwande/Ushongo Federal Constituency in Benue State, expressed frustration over repeated assurances by government officials that have yet to materialise, stating "It’s been failed promises, but we hope contractors will start receiving payments soon."

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A lawmaker who declined to be named said "Some amounts of money may be released on Friday, but no one knows how much it is, for now", and called on the Federal Government to pay all outstanding debt to contractors.

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The payment crisis dates back to the 2024 budget cycle, during which hundreds of contractors executed capital and constituency-based projects, many tied to zonal intervention projects facilitated by federal lawmakers.

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Despite completing and delivering these projects, contractors have struggled to receive payment, triggering widespread dissatisfaction across the country.

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The situation worsened throughout 2025, as repeated assurances from the Ministry of Finance and the Office of the Accountant-General failed to translate into actual disbursements.

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The Minister of Finance, Wale Edun, and the Accountant-General of the Federation, Shamseldeen Ogunjimi, had indicated that arrangements were underway to clear the backlog, but payments did not materialise as expected.

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The delays stalled ongoing and planned projects, and placed lawmakers under intense pressure from their constituents, who blamed them for the non-completion of projects already awarded and executed.

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Frustration over the unpaid debts eventually led to protests by aggrieved contractors in December 2025 and January 2026 at the National Assembly Complex.

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Carrying placards and chanting slogans, the protesters accused the government of neglecting indigenous contractors and jeopardising local businesses that had taken loans to finance public projects.