Members of the House of Representatives have suggested that the Federal Government may finally begin settling its massive debt to local contractors this week. The breakthrough comes after a long period of financial uncertainty for indigenous businesses that completed government projects during the 2024 fiscal year.
To address the mounting backlog, the Federal Government has allocated N1.8 trillion within the 2026 Appropriation Bill. This fund is split into two primary categories:
- N1.7 trillion: Dedicated to capital projects executed in 2024.
- N100 billion: Set aside for other outstanding debts owed to domestic contractors.
While legislators have not specified the exact amount to be released in this initial phase, several lawmakers expressed a “cautious optimism” that the payment cycle is about to commence.
Sada Soli, who leads the North-West caucus in the House, confirmed he was aware of the impending disbursements but noted that the specific commitment to the budget implementation remains unclear. Similarly, Ikenga Ugochinyere (representing Ideato North/South) highlighted the toll these delays have taken on constituency projects and the public’s trust in their representatives. He expressed hope that the rumored payments would materialize this week to allow stalled development projects to reach completion.
The payment crisis has been a source of significant tension, with many contractors facing severe financial hardship after using personal loans to finance public works. The delay has not only affected large-scale infrastructure but also smaller “zonal intervention” projects directly impacting local communities.
The situation previously escalated into public unrest, with aggrieved contractors staging protests at the National Assembly in late 2025 and early 2026. Despite earlier promises from Finance Minister Wale Edun and the Office of the Accountant-General, actual payments have been slow to reach those on the ground.
Lawmakers, including Terseer Ugbor of Benue State, noted that while there have been many “failed promises” in the past, there is renewed hope that the government will “do the needful.” Clearing these liabilities is seen as a crucial step in allowing new infrastructure projects to begin and restoring the financial health of the nation’s indigenous construction sector.
