Tinubu sets up high-powered team to clear N1.5tn owed to over contractors

President Bola Ahmed Tinubu on Wednesday set up a high-powered committee to tackle the swelling backlog of payments owed to federal contractors, after expressing what insiders described as “grave displeasure” over a debt stock now estimated at about N1.5 trillion.

The development came to light after the Federal Executive Council meeting in Abuja, where the President was briefed on the scale of obligations the government has failed to honour.

Speaking to journalists shortly after the meeting, the President’s Special Adviser on Information and Strategy, Bayo Onanuga, said Tinubu was visibly upset upon learning that more than 2,000 contractors were awaiting payments for completed projects across ministries.

“He made it very, very clear he is not happy and wants a one-stop solution. An important highlight in the course of the FEC meeting is that the President expressed grave displeasure about the fact that contractors are being owed money,” Onanuga said, stressing that Tinubu demanded urgent action.

The trigger was a detailed briefing from the Director-General of the Bureau of Public Procurement (BPP), Dr Adebowale Adedokun, who laid before the Council the magnitude of unpaid obligations spanning multiple years.

In response, the President approved the constitution of a multi-ministerial committee charged with designing a clear, realistic funding plan to offset the debt.

The team includes the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and Economic Planning, Atiku Bagudu; Minister of Works, Dave Umahi; Minister of Education, Olatunji Alausa; Minister of Housing, Ahmed Dangiwa; and Minister of Marine and Blue Economy, Gboyega Oyetola. Also listed are the Director-General of the Budget Office, Tanimu Yakubu, and the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji.

According to Onanuga, the President directed the committee to sit together, harmonise figures, develop a payment roadmap, and present a comprehensive solution directly to him.

Tinubu, he added, signalled a readiness to explore all financial options to clear verified arrears, including borrowing if necessary.

“He even said that, as a sovereign country, we can go and borrow to pay those contractors,” Onanuga disclosed, a remark that underscores the administration’s urgency to prevent stalled projects and legal liabilities from deepening.

The President’s intervention follows sustained pressure from contractors who have repeatedly protested non-payment of certified arrears.

In September, the All Indigenous Contractors Association claimed that more than N4 trillion remained outstanding for 2024 capital projects during demonstrations in Abuja and at the National Assembly.

Earlier this year, the Ministry of Works acknowledged a significant backlog and commenced a verification exercise to account for about N1.5 trillion in unpaid federal highway contracts.

The problem has been compounded by overlapping budget cycles, with significant portions of the 2024 capital expenditure spilling into 2025 due to delayed releases.

This comes as the federal government continues to expand its deficit financing framework. In November, the National Assembly approved an additional N1.15 trillion in domestic borrowing to support the 2025 budget, even as the government raised $2.35 billion through a Eurobond issuance to strengthen its fiscal capacity.

For now, the new committee carries the burden of crafting the plan that will finally close a painful chapter for thousands of contractors whose businesses have been strained by prolonged government indebtedness.

Whether Tinubu’s tough tone translates to immediate relief on the ground will become clearer in the coming weeks as the committee submits its recommendations.

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