Senate forms panel to negotiate with federal government on outstanding contractor arrears

The Senate took a significant step on Tuesday by establishing a six-member committee, tasked with the responsibility of interacting with the Federal Ministry of Finance to facilitate reimbursement of outstanding payments to local contractors who have executed projects across the country.

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This development was announced by Senate President Godswill Akpabio following a closed-door session, highlighting the committee's crucial role in addressing the long-standing issue of unpaid debts to contractors.

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The committee, chaired by Sani Musa, who serves as the Chairman of the Senate Committee on Finance and represents Niger East Senatorial District, will work tirelessly to achieve its objectives.

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Other members of the committee include notable senators such as Adetokunbo Abiru from Lagos, Kawu Sumaila from Kano, Sani Bello from Niger, Isah Jibrin from Kogi, and Yahaya Abdullahi from Kebbi, all of whom are expected to contribute their expertise to the committee's efforts.

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The Senate president has given the committee a one-week deadline to submit its report, which should provide detailed information on the federal government's efforts to settle the outstanding debts owed to contractors.

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According to reports, local contractors, operating under the umbrella of the All Indigenous Contractors Association of Nigeria, claim that their outstanding certified liabilities fall within the range of ₦3 trillion to ₦4 trillion.

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However, the Federal Government has provided lower verified figures, acknowledging an estimated ₦760 billion backlog for certain highway and legacy contracts, which highlights the disparity in the reported figures.

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In a recent statement, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, assured local firms of a transparent and structured payment process for verified claims, aiming to address the concerns of contractors.