President Tinubu Sets Up Committee to Clear ₦1.5 Trillion Debts Owed to 2,000 Contractors

President Tinubu Sets Up Committee to Clear ₦1.5 Trillion Debts Owed to 2,000 Contractors

President Bola Tinubu has established a high-level committee to resolve the backlog of unpaid federal contractors, who are owed approximately ₦1.5 trillion. The committee, comprising key ministers and heads of government agencies, will develop a plan to allocate funds to pay contractors and find a solution to the problem .

The move follows weeks of pressure from contractors who have been decrying delays in payment of arrears for jobs completed since the previous year. The contractors had protested at the Finance Ministry and National Assembly, claiming that over ₦4 trillion was outstanding for certified 2024 capital projects .

The committee, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, will work with other key ministers and government officials to find a solution to the problem. The committee’s mandate includes identifying the root causes of the debt crisis and developing a plan to allocate funds to pay contractors .

President Tinubu has expressed “grave displeasure” over the backlog of unpaid contractors and has directed the committee to find a one-stop solution to the problem. According to Bayo Onanuga, Special Adviser on Information and Strategy, Tinubu is committed to finding a solution and has even suggested borrowing money to pay contractors if necessary .

The establishment of the committee is a positive step towards resolving the debt crisis and ensuring that contractors are paid for their work. The outcome of the committee’s work is expected to have significant implications for the construction industry and the economy as a whole.