The Nigerian Federal Government is facing mounting pressure to reassess its payment policy for contractors handling national projects. Obi Aguocha, Chairman of the House of Representatives Committee on Monitoring and Evaluation, has urged the government to revisit its current payment mode. This call comes amid protests by aggrieved contractors, who claim that over 90% of completed projects in 2024 remain unpaid.
Aguocha, representing Ikwuano/Umuahia North/Umuahia South Federal Constituency of Abia State, warned that the non-payment of contractors erodes public trust in the government’s ability to manage projects effectively. He stressed that the central payment system, domiciled in the Office of the Accountant General of the Federation and the Federal Ministry of Finance, has failed to achieve the desired efficiency. Aguocha suggested that reviewing the policy could help reduce the hardship and challenges facing contractors.
The All Indigenous Contractors Association of Nigeria (AICAN) has revealed that many contractors are struggling with mounting bank loans and rising interest rates due to non-payment. This situation has direct consequences for budgetary projects, as contractors are reluctant to take up new assignments without assurances of timely payment. Projects already approved in the appropriation act risk delays or abandonment, and communities in dire need of infrastructure may be denied the benefits of government intervention.
With only four months left in 2025, the emphasis is still on settling 2024 projects, creating a backlog that undermines effective planning and disrupts the yearly budget cycle. Aguocha expressed concern that about 95% of projects nationwide are not cash-backed for execution, despite the recent approval of a $22 billion borrowing transaction by the National Assembly for projects nationwide.
The lawmaker emphasized that project execution is crucial for bringing dividends of democracy to the grassroots and that everything must be done to ensure its success. He called on the authorities managing project funding to ensure that the masses are not shortchanged through the non-release of funds for projects already earmarked in the 2024/2025 appropriation act. The government’s prompt attention to this issue is necessary to prevent further delays and ensure the effective implementation of national projects.
