Contractors working on federal projects nationwide have called on President Bola Tinubu to intervene in the payment of outstanding debts owed by the Federal Government.
Accusing the government of intentionally delaying project funding, they urged the President to instruct the Finance Minister, Wale Edun, to fast-track the release of funds to settle their dues. They emphasised that the failure to disburse payments has not only forced them to abandon project sites but is also exacerbating their financial losses.
Speaking on behalf of the contractors on Tuesday, Austin Emegwagwa revealed that the last payments were made in October 2024. He stated that most contractors have since withdrawn from sites—except those working on the Lagos-Calabar coastal road, who he claimed are being paid in advance.
“The new payment system, referred to as ‘bottom-up,’ has yet to cover payments from November to March. Even now, budget releases to Ministries, Departments, and Agencies (MDAs) for 2024 remain below 50%,” Emegwagwa said.
“Since the inception of the current democratic era, we have never experienced such prolonged delays. Contractors last received payments in October 2024, leaving them in limbo from November till now,” he added.
Emegwagwa expressed concern over the delays, suggesting that the government’s inaction casts doubt on the feasibility of the 2025 budget. He questioned how the Federal Government could assure Nigerians of funding the 2025 budget when less than 40% of the 2024 budget has been released.
He further alleged that many contractors suspect the government is deliberately withholding funds, despite their projects nearing completion. “This is a major disincentive for those of us who have invested heavily in these projects,” he remarked.
Emegwagwa also criticised the apparent preferential treatment given to the Lagos-Calabar coastal road project, where payments are reportedly being processed without delay, while other contractors remain unpaid.
He lamented that despite the removal of fuel subsidies, increased borrowing, and the naira’s devaluation, the government continues to neglect its contractual obligations. “Many of us are on the brink of bankruptcy, having borrowed from banks at exorbitant interest rates. We implore the President to intervene,” he pleaded.
