Tinubu sets up multi-ministerial panel to settle debts owed to federal contractors

President Bola Tinubu has set up a multi-ministerial committee to resolve the ongoing crisis over unpaid federal contractors, with outstanding payments at about N1.5 trillion.

Speaking after the federal executive council (FEC) meeting on Wednesday, Bayo Onanuga, presidential adviser on information and strategy, said Tinubu expressed “strong dissatisfaction” after learning that more than 2,000 contractors, many indigenous, remain unpaid for completed projects.

Onanuga said the president was briefed by Adebowale Adedokun, director-general of the Bureau of Public Procurement (BPP), who detailed the extent of the outstanding obligations.

According to the presidential spokesperson, the committee comprises key government officials tasked with developing a clear plan for the prompt release of the outstanding funds.

The committee members are Wale Edun, minister of finance and coordinating minister of the economy; Atiku Bagudu, minister of budget and economic planning; Tanimu Yakubu, director-general of the budget office; Dave Umahi, minister of works; Ahmed Dangiwa, minister of housing and urban development; and Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS).

Onanuga said the committee has been given a mandate to urgently review the payment delays, identify funding sources, and present the President with a viable solution for releasing the owed funds.

He said Tinubu emphasised the need for swift action and indicated that the federal government is open to borrowing—as a sovereign state—to settle verified contractor debts if necessary.

“All of them are supposed to sit down, develop a plan as a committee, and then go to the President to tell him the solution they have found in allocating funds to pay contractors,” Onanuga said.

“He even said that, as a sovereign country, we can go and borrow to pay those contractors.”

This development follows recurring protests by the local contractors over unpaid contract sums.

On Tuesday the Coalition of Indigenous FCT Contractors protested an alleged N5.2 billion debt owed by the Federal Capital Territory Administration (FCTA).

The protesters blocked the main entrance of the FCTA secretariat in Abuja with a truck while chanting the name of Nyesom Wike, the FCT minister, and demanding immediate payment for projects they said were fully executed and verified.