The Senate on Tuesday constituted a six-member committee to liaise with the Federal Ministry of Finance and facilitate the reimbursement of outstanding payments owed to local contractors for capital projects executed across the country. Senate President Godswill Akpabio announced the membership during plenary after a majority of senators supported it through voice votes.
Committee Composition
Mr Akpabio stated that the committee would be chaired by Senator Sani Musa (APC, Niger East), who also chairs the Senate Committee on Finance. Other members include Adetokunbo Abiru (APC, Lagos East), Kawu Sumaila (APC, Kano South), Abubakar Sani Bello (APC, Niger North), Isah Jibrin (APC, Niger East), and Abdullahi Yahaya (APC, Kebbi Central).
Mandate and Timeline
The Senate president directed the committee to submit its report within one week, detailing the federal government's efforts toward settling outstanding debts owed to contractors. This decision follows protests by contractors demanding payment for capital projects executed across the country.
Background of the Debt Dispute
Contractors under the All Indigenous Contractors Association of Nigeria (AICAN) have repeatedly claimed that the federal government owes them about ₦4 trillion for completed projects, particularly those under the 2024 budget. The government, however, maintains that a substantial portion of verified claims has been settled and that remaining liabilities are undergoing verification and phased payment.
The debt dispute has triggered protests in Abuja since 2025. Contractors have occupied the premises of the Federal Ministry of Finance and blocked access, accusing officials of failing to honor promises to release funds. Many contractors borrowed from commercial banks to execute government contracts and have been unable to repay loans due to delayed payments, leading to loan defaults, business closures, and asset seizures.
Government Response
Former Minister of Finance, Wale Edun, disclosed that over ₦2 trillion in capital obligations had been paid, while the ministry confirmed the release of ₦152 billion to contractors after verification. The government has also made provisions in subsequent budgets to address outstanding liabilities and continues engagements with contractors on a phased settlement plan.
The issue remains contentious due to wider economic implications. Delays in paying contractors slow infrastructure delivery, increase project costs through accumulated interest and inflation, and weaken local construction firms. The controversy is heightened as the federal government seeks new borrowing to finance budget deficits and infrastructure development, while officials argue that borrowing is necessary to fund ongoing projects and support economic growth as outstanding obligations are settled in phases based on available revenues and verification procedures.
