Tinubu Sets Up Ministerial Panel To Clear Debts Owed 2,000 Local Contractors

President Bola Tinubu has constituted a high-level ministerial committee to address the backlog of unpaid debts owed to more than 2,000 federal contractors, a liability estimated at over N4trn.

Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this on Wednesday after the Federal Executive Council (FEC) meeting in Abuja.

He said the move followed months of sustained pressure from indigenous contractors who have repeatedly protested at the Ministry of Finance headquarters and the National Assembly over delays in payment for completed projects.

According to him, President Tinubu received a fresh briefing on the scale and implications of the outstanding obligations and subsequently held “a very productive discussion” with relevant ministers to chart a coordinated response.

Onanuga noted that the prolonged non-payment has placed many contractors under severe financial strain, leading to loan defaults, loss of property, deteriorating health conditions, and, in some cases, deaths.

The outstanding bills have also created bottlenecks in key sectors where projects had been executed but remained unsettled.

Although the Minister of Finance, Wale Edun, had earlier announced a structured pathway for settling the debts following presidential directives, contractors insisted that less than one per cent of verified claims have been paid.

To resolve the crisis, Onanuga said the President has approved a mechanism to verify claims, reconcile government records, and propose sustainable payment options.

The ministerial panel comprises the Minister of Finance; Minister of Budget and Economic Planning; Director-General of the Budget Office; Minister of Works; Minister of Education; Minister of Housing and Urban Development; and the Minister of State for Industry, Trade and Investment.

He said the ministers are expected to “sit together, harmonise data, and develop a comprehensive solution that will determine how and when the outstanding payments will be settled.”

Onanuga added that President Tinubu remained committed to restoring transparency and order to the contractor-payment process, ensuring genuine contractors are promptly paid while blocking abuses and irregularities.

“The committee has the President’s full backing to resolve this matter decisively,” he added.