The Association of Nigerian Contractors (ANC) has made an urgent appeal to President Bola Ahmed Tinubu, requesting immediate payment of funds owed to its members since January 2024. The contractors expressed deep concern about their ability to celebrate the upcoming Christmas season without these long-overdue payments.
Financial Crisis Deepens for Local Contractors
Chief Tobiloba Durojaiye, Chairman of ANC, revealed the dire situation during a press briefing held in Ilorin. He explained that the approaching yuletide would be particularly bleak for contractors who are currently paying substantial interest rates on loans they obtained to execute Federal Government projects.
"We have never had it so bad with the Federal Government until recently when we are owed money over successive projects we had carried out since year 2024 till date," Durojaiye stated emphatically.
The contractors had followed due processes in securing these government projects and never anticipated such prolonged delays in payment. Many had turned to commercial banks for financial lifelines, expecting to repay these loans with their government earnings.
Desperate Measures and Christmas Concerns
Durojaiye painted a grim picture of the contractors' current circumstances, revealing that many have resorted to selling personal property to sustain their families and maintain their livelihoods. The situation has become so critical that contractors have nothing left to fall back on if payments aren't made promptly.
"Christmas is approaching now, we don't know what to do to survive its celebrations with families and friends," he lamented, highlighting the emotional and financial toll the delayed payments have taken on the contractors and their families.
Despite numerous efforts to secure their payments from the government, all attempts have proven futile, leaving the contractors in an increasingly precarious financial position.
Potential Impact on Government Tax Revenue
While acknowledging and praising the new tax schemes introduced by the Tinubu administration, Durojaiye warned that these policies might not achieve their intended targets if contractors remain unpaid. The scheduled tax initiatives, set to commence in 2026, could face significant challenges without contractor cooperation.
"The humongous taxes from the contractors would not be released into the coffers of the government and this may pose serious threats to the expected income from Mr President's taxations belief," Durojaiye explained.
He further cautioned that the consequences of non-payment could extend to impeding the execution of 2026 Capital Projects, creating a ripple effect that might hamper national development initiatives.
To resolve the Federal Government's indebtedness, Durojaiye proposed a practical solution: prompt payment through reasonable tranches that would provide immediate relief to struggling contractors while ensuring the government meets its financial obligations.
