Tinubu Creates Panel to Clear N1.5 Trillion Debts Owed 2,000 Contractors
President Bola Tinubu has established a ministerial committee to address the backlog of payments owed to approximately 2,000 federal contractors, amounting to an estimated N1.5 trillion. The move follows the president’s expression of concern over prolonged delays in settling verified claims for completed projects.
The committee comprises key officials, including the Ministers of Finance, Budget and Economic Planning, and heads of departments responsible for procurement, public works, housing, and revenue collection. Its mandate is to verify outstanding claims, harmonize payment records, and develop a clear plan to settle the debts efficiently.
At a briefing after a Federal Executive Council meeting, officials explained that the panel would work to ensure verified contractors receive their due payments promptly. The plan may include mobilizing funds through federal allocations or borrowing if necessary to clear the backlog.
The outstanding payments had caused widespread protests and complaints from contractors, many of whom reported severe financial hardships, including loan defaults, loss of assets, and disrupted operations. The president’s directive aims to restore confidence among contractors and encourage renewed participation in federal infrastructure projects.
Analysts note that clearing these debts could stimulate economic activity, particularly in the construction sector, and strengthen the government’s relationship with private contractors. The panel is expected to provide progress updates regularly to ensure transparency and accountability in the payment process.
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