FG: We’re ready to clear N1.5trn debt owed contractors

The Federal Government says it is set to pay up the N1.5 trillion debt owed contractors for the construction of federal highways across the country.

The government, however, advised the contractors to be serious in executing its projects.

The Minister of Works, David Umahi, said this at a meeting with the contractors in Abuja on Thursday, January 11, 2024.

Providing insight on plans to clear the debt, Umahi said the federal government had set up a verification committee to screen contractors’ certificates and recommend payments.

The minister said: “I want to assure you that every verification made will be paid; we are going to have automated payment system.

“You are requested to come up with proof of how these debts are generated.

“The earlier you do it the better, the economic team and Federal Executive Council will expect us to give them facts. I assure you that every verification that has merit will be paid but it shall be on a first come, first served basis.”

Umahi, who frowned at contractors closing up sites during the festive season when the traffic on the roads was high, said the attitude of contractors to close sites at the critical time of the year would no longer be tolerated.

READ ALSO: Umahi to road contractors: Return to site in 14 days or lose your contracts

He added: “We are almost in the middle of January; most of you closed sites on December 15 to reopen on the 15th of January; losing a most valuable one month that would not be allowed to happen again.

“That is not good, we have to agree, if you have to take off, you can take one week but to close site at the critical time of the season to observe festivities will not be allowed anymore.

“Going forward, we are going to track our projects. On our part we are addressing late payments; we mean business in 2024 and we want to work with contractors that are serious.

“Contractors of Lokoja-Benin road should please return to site or their contracts will be terminated.”

The minister said the government planned to complete 150 kilometres of roads in each 36 states and the FCT.

He said the target excluded the palliative work and other special projects embarked upon by the Federal Government like those of the SUKUK, presidential special funds, or the Tax Credit Scheme.

The 5,550 kilometre road network target, according to the minister, is the minimum projection for the year.

Umahi said: “Nigerians will want to see us complete 150km in each of the 36 states and the FCT and you will see the total number of roads completed and that will be a good way to start.

“We are not talking about the palliatives. And if it is a dual road, it is just 75km. So let’s just start and I am sure that we will definitely get there.”

The Star