Concerns Mount Over Nigerian Government’s Delayed Contractor Payments

Growing anxiety surrounds the Nigerian government’s delayed payment of contractors, sparking criticism from lawmakers, stakeholders, and industry professionals who argue that the situation is harming the economy.

This issue gained more attention when Obi Aguocha, Chairman of the House of Representatives Committee on Monitoring and Evaluation, publicly urged the Federal Government to address the backlog of payments owed to contractors since last year.

Back in June 2025, Bauchi lawmaker Senator Abdul Ahmed Ningi had earlier raised alarm on the floor of the Senate over the non-payment of federal contractors since 2024, calling for a full investigation into the matter.

Despite assurances from the Office of the Accountant General of the Federation (OAGF) that payments would soon be made, the government’s pledge was not immediately honored, fueling skepticism and uncertainty among contractors and stakeholders.

---

Stakeholders Express Frustration

The delay has triggered heated reactions across different sectors. Speaking in an interview with DAILY POST, the former President of the Real Estate Developers Association of Nigeria (REDAN), Aliyu Wammako, emphasized that the impact extends beyond contractors. According to him, the non-payment has ripple effects that touch nearly every sector of Nigeria’s economy.

Wammako explained that the circulation of funds from contractors to workers, professionals, and suppliers forms the foundation of Nigeria’s economic growth. He urged the government to prioritize clearing these debts without delay so that the economy could regain momentum.

He further echoed Senator Ningi’s call on the Senate floor, stressing that the Federal Government must release payments promptly to contractors to ensure capital projects continue as planned.

“The non-payment of contractors by the government affects not only construction workers and service providers but the entire Nigerian economy,” Wammako said. “The funds must flow, otherwise development remains stagnant.”

---

Federal Budget and Capital Project Concerns

Reports indicate that in 2024, Nigeria spent only a small portion of the ₦24.9 trillion budget earmarked for capital projects. Similarly, the 2025 capital expenditure allocation of ₦23.96 trillion has also faced poor implementation.

In June, the Senate approved another extension of the capital budget implementation, making it the second in seven months. This persistent delay has intensified criticism of the government’s handling of developmental projects.

Although the Bola Ahmed Tinubu administration recently defended itself against claims that capital projects were concentrated in Lagos State, stating that projects are spread across all six geopolitical zones, reports from LMSINT MEDIA confirm that none of these projects have reached 50% completion.

---

Nigerian Government Begins Payments Amid Criticism

Amid rising outrage, the Federal Government has now confirmed the commencement of contractor payments for projects under ministries, departments, and agencies (MDAs).

According to Bawa Mokwa, spokesperson for the OAGF, clearance of outstanding debts has begun following more than a year of halted payments.

However, as of the time of this report, contractors themselves are yet to confirm receipt of these funds, leaving doubts among stakeholders about the true pace of disbursement.