FG Begins Payments to Contractors After Over a Year-Long Delay
The Federal Government of Nigeria (FG) has officially begun the long-awaited payment of contractors engaged in various projects across Ministries, Departments, and Agencies (MDAs). This development comes after over a year of unpaid bills, which left many contractors stranded and projects stalled.
Why the Delay Happened
For more than 12 months, several contractors working on federal projects were left unpaid, causing financial strain on businesses and threatening the completion of critical infrastructure. Lawmakers, including Senator Abdul Ahmed Ningi and Rep. Obi Aguocha, had earlier raised concerns, urging the government to clear the backlog to prevent project abandonment.
Confirmation of Payment
According to Bawa Mokwa, spokesperson for the Office of the Accountant General of the Federation (OAGF), payments have now resumed following a meeting between government officials and affected contractors. The long delays are being addressed, and disbursements are currently underway.
Why This Matters
- Economic Relief for Contractors – The payments will provide much-needed financial stability for contractors, workers, and suppliers who have been struggling during the delay.
- Boost to Infrastructure Development – With payments resuming, abandoned or stalled projects are expected to continue, improving Nigeria’s infrastructure delivery.
- Restoring Confidence – This move rebuilds trust between the government and contractors while strengthening investor confidence in Nigeria’s project funding systems.
The Bigger Picture
Experts have warned that delayed payments negatively affect the economy by disrupting supply chains and lowering capital project execution, which has been estimated at less than 50%. By resuming payments, the government signals a renewed commitment to ensuring accountability, transparency, and progress in its infrastructure agenda.
Final Thoughts
The decision by the FG to begin paying contractors after a year-long delay marks a turning point for Nigeria’s infrastructure and economic stability. However, for long-term success, it is vital that the government ensures timely payments moving forward to avoid another cycle of delays and project setbacks.