Nigerian Prison Contractors Cry Out for Help Over ₦30 Billion Debt

Contractors responsible for feeding inmates in correctional centers across Nigeria are sounding the alarm over the federal government’s failure to pay outstanding debts totaling over ₦30 billion. The contractors claim they have been owed for several months, including a backlog of approximately ₦7.7 billion from late 2023.

The situation is further complicated by the government’s failure to implement a revised feeding allowance approved in August 2024. The new rate, which increases the daily feeding allowance per inmate from ₦750 to ₦1,125, was intended to improve the quality of meals and ease the financial burden on contractors. However, payments have continued at the old rate, resulting in a ₦23 billion shortfall.

The contractors, who operate small to medium-scale food businesses, are struggling to cope with the financial strain. Many have resorted to taking high-interest loans to sustain food supplies, while others have sold off assets to keep their contracts running. The unpaid debts are not only affecting the contractors but also impacting the wider economy, potentially disrupting value chains and leaving suppliers and laborers unpaid.

The contractors are urging the government to settle the outstanding debts and implement the revised feeding allowance to prevent a humanitarian and security crisis in the correctional facilities. Experts warn that the failure to address this issue could lead to unrest among inmates, compromising the safety and security of both the inmates and the correctional facilities.