Tinubu Raises Panel To Pay N1.5tn Debt Owed 2,000 Contractors

President Bola Tinubu has established a ministerial committee to address the debts owed to over 2,000 federal contractors, a liability estimated at more than N4 trillion.

The special adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this yesterday 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 Federal Ministry of Finance 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 said the prolonged non-payment had placed many contractors under severe financial strains, leading to loan defaults, loss of property, deteriorating health conditions, and, in some cases, deaths.

The debts have also created bottlenecks in key sectors where projects had been executed but remain unsettled.

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

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

The 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.”