Senate Sets Panel To Engage Finance Ministry On Local Contractors’ Debts

The Senate has constituted a six-member ad hoc committee to engage the Federal Ministry of Finance on the settlement of outstanding debts owed to indigenous contractors for projects executed across the country.

Senate President Godswill Akpabio, announced the committee during plenary following a closed-door session, directing it to immediately begin discussions with relevant government agencies on the backlog of verified contractual obligations.

Akpabio said the committee will serve as an interface between the Senate and the Ministry of Finance to fast-track the verification and payment process for contractors who have completed government projects but remain unpaid.

He named Senator Sani Musa, Chairman of the Senate Committee on Finance, as head of the panel.

Other members include Senators Adetokunbo Abiru (Lagos East), Kawu Sumaila (Kano South), Sani Bello (Niger North), Isah Jibrin (Kogi East), and Abdullahi Yahaya (Kebbi North).

The Senate President tasked the committee with submitting its report within one week, detailing the status of outstanding debts, government efforts so far, and prospects for settlement.

The move comes amid growing pressure from contractors over unpaid claims linked to federal capital and infrastructure projects nationwide.

Contractors under the All Indigenous Contractors Association of Nigeria have repeatedly staged protests in Abuja over delayed payments, insisting that government liabilities run into trillions of naira.

The group has claimed that outstanding debts range between N3 trillion and N4 trillion, although the federal government has disputed the figure, citing a lower verified backlog.

Officials have previously acknowledged about N760 billion in outstanding payments tied to highways and legacy projects.

The federal government, through the Ministry of Finance Federal Ministry of Finance, has also indicated that provisions have been made in the 2026 budget for gradual settlement of verified obligations.

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, had earlier assured contractors that payments would follow a transparent verification process to ensure only legitimate claims are honoured.

The Senate said the committee’s engagement will help clarify the true scale of liabilities and guide legislative action on funding and payment priorities.

Lawmakers added that resolving the debt backlog could ease pressure on contractors, revive stalled projects, and stimulate broader economic activity across the country.