By Mercy Aikoye
The House of Representatives has announced plans to investigate the reasons behind the Federal Government’s failure to pay contractors working with Federal Ministries, Departments, and Agencies (MDAs) since 2024. This decision comes amid growing concerns over the impact of non-payment on project implementation and the economy.
The House has resolved to invite key officials, including the Minister of Finance, Minister of Budget and Economic Planning, Accountant-General of the Federation, Governor of the Central Bank of Nigeria, and Auditor-General of the Federation, to appear before the House on May 13, 2025. These officials are expected to provide explanations for the non-payment of contractors and a clear timeline for settling all outstanding verified payments.
The resolution was passed after the adoption of a motion sponsored by Hon. Nnamdi Ezechi, who highlighted the gravity of the situation. Ezechi noted that contractors have not received payment for certified work completed since October 2024, despite budgetary provisions for capital projects in the 2024 Appropriation Act. He expressed concern that budget releases to MDAs remain below 50%, resulting in widespread project abandonment and financial distress among contractors.
The House observed that the non-payment has severely hindered the implementation of critical constituency projects, undermined public confidence in government delivery, and weakened investor trust in the nation’s infrastructure sector. The delay in payment to contractors has also resulted in job losses, stalling of infrastructure development, and disruptions to community-based projects across the Federation.
Former Deputy Speaker Hon. Idris Wase and Hon. Ibrahim Isiaka also spoke on the issue, emphasizing the need for mobilizing funds for contractors to finish ongoing projects. They identified the failure of disbursement of funds to contractors as one of the major problems retarding project completion in the country.
To address the situation, the House mandated the joint Committees on Public Accounts and Budget and Economic Planning to conduct a joint inquiry into the systemic failure to disburse funds for contractor payments. The committees are expected to investigate accountability lapses at MDAs responsible for processing payments and report back to the House within four weeks with findings and recommendations for remedial legislative action.
The House urged the Executive to take immediate administrative measures to clear all outstanding debts owed to contractors and institute a transparent payment mechanism for contractor claims. This, the lawmakers believe, will prevent the recurrence of delays and ensure that future budgetary releases for capital projects are disbursed promptly to safeguard jobs and restore confidence in government project delivery.
By taking these steps, the House of Representatives aims to address the concerns of contractors and the public, and ensure that ongoing projects are completed to boost the economy and improve the lives of Nigerians.
