Contractors Decry Non-Payment, Accuse Federal Gov’t Of Stalling Projects

Contractors handling federal projects across the country have raised concerns over delayed payments, accusing the federal government of deliberately stalling construction works through funding bottlenecks.

They lamented that the prolonged delay in disbursement has forced many to abandon project sites, leading to mounting financial losses.

Speaking on behalf of the affected contractors, Austin Emegwagwa revealed that the last payment received was in October 2024.

“The new payment method is referred to as bottom-up, and unfortunately, the bottom-up for November to March has not been paid. Up till now, the releases for the 2024 budget to MDAs is not up to 50 percent,” he stated.

Emegwagwa emphasised that the situation has never been this dire since Nigeria’s return to democracy, stressing that contractors have been left stranded for nearly five months. He noted that except for those handling the Lagos-Calabar coastal road—whom he claimed were receiving payments in advance—most contractors have abandoned their project sites due to lack of funds.

“We have never experienced this long delay since the dawn of the current democratic dispensation. Contractors were paid last in October 2024. So, from November to date, there has been a long wait for payment,” he said.

Expressing skepticism over the government’s ability to finance the 2025 budget, he argued that if the 2024 releases were yet to hit 40 per cent, it raised concerns about the country’s fiscal direction.

“Most contractors are tempted to believe that the government is deliberately starving them of funds even though their projects are at advanced stages of completion. This is a disincentive to most of us who have committed resources to the projects we are handling,” he added.

He further alleged that the government’s primary focus appears to be on the Lagos-Calabar coastal road, claiming that payments for the project have been seamless, while others are left unpaid.

“In spite of subsidy removal, excessive borrowing, and the devaluation of the naira, the government is still not willing to honor its contractual obligations to contractors. Most of us are on the verge of going bankrupt because we borrowed money from banks at huge interest rates. The President should kindly come to our aid,” he appealed.

Emegwagwa urged President Bola Tinubu to intervene by directing the Minister of Finance, Wale Edun, to prioritise the payment of outstanding debts, especially in light of the observances of Holy month of Ramadan and Lent, during which both Muslims and Christians seek relief.