Contractors may get part-payment on N1.8trn debt this week — Reps

Members of the House of Representatives have signalled that the Federal Government may begin releasing funds this week to settle part of the N1.8 trillion owed to contractors who executed capital projects in the 2024 fiscal year, raising cautious hopes among thousands of businesses that have waited months for payment.

The lawmakers, speaking separately, declined to specify the expected disbursement amount but expressed guarded optimism that the long-delayed payments would finally commence.

The Federal Government had earmarked N1.8 trillion in the 2026 Appropriation Bill to clear outstanding contractor liabilities — N1.7 trillion for 2024 capital projects and N100 billion for other local contractor debts.

Leader of the North-West caucus in the House, Sada Soli, who represents Jibia/Kaita Federal Constituency of Katsina State, confirmed awareness of the imminent payments but said details remained sketchy.

“I am aware of it, but I don’t know how much they’re talking and committing to the implementation of the budget,” Soli said.

Ikenga Ugochinyere, representing Ideato North/Ideato South Federal Constituency of Imo State, tied the payment crisis directly to lawmakers’ standing before their constituents.

“Lawmakers have suffered from delays in paying contractors working to execute constituency projects, but I have been told certain payments will likely be made this week. I hope it comes to light to help complete development projects across the constituencies,” he said.

Terseer Ugbor, who represents Kwande/Ushongo Federal Constituency in Benue State, struck a more sceptical note, citing a pattern of unfulfilled assurances.

“It’s been failed promises, but we hope contractors will start receiving payments soon. So far, I can’t confirm any payments yet,” Ugbor said.

A lawmaker who declined to be named added that some funds could be released on Friday, though the exact amount remained unknown. He urged the Federal Government to clear all outstanding debts so that new projects could commence.

The payment crisis dates to the 2024 budget cycle, during which hundreds of contractors executed capital and constituency-based projects — many of them zonal intervention projects tied to federal lawmakers. Despite completing and, in several cases, delivering these projects, the contractors have struggled to receive payment, triggering widespread dissatisfaction.

The situation deteriorated throughout 2025 as repeated assurances from the Ministry of Finance and the Office of the Accountant-General failed to translate into actual disbursements. Finance Minister Wale Edun and Accountant-General of the Federation Shamseldeen Ogunjimi had both indicated at various points that arrangements were underway to clear the backlog, but the payments did not materialise.

Beyond stalling projects, the delays placed lawmakers under intense constituency pressure, with many residents blaming their representatives for the non-completion of already-awarded projects.

Frustration eventually boiled over publicly. In December 2025 and January 2026, aggrieved contractors staged protests at the National Assembly Complex in Abuja, carrying placards and accusing the government of neglecting indigenous businesses that had taken loans to finance public projects.