The Federal Government faces growing pressure to settle over N720 billion in debts owed to contractors. Many of these contractors delivered key infrastructure projects across the country, but years of delayed payment have left them financially crippled.
Several contractors say they borrowed from banks to execute federal contracts, expecting prompt payment. However, delayed or no payments have pushed many into bankruptcy, with some unable to pay workers or service loans. Industry experts warn this growing debt undermines trust in government and discourages private sector participation in national development.
The Nigerian Indigenous Contractors Association said the debt, accumulated over multiple administrations, has become a moral issue. “Government must honour its obligations. People used their personal and company assets to raise funds. Now, they’re suffering,” a spokesperson said.
Some contractors say they have received no response despite repeated letters to ministries. Others claim officials are demanding bribes to process their payments, worsening the crisis.
Economic analysts argue that clearing these debts could stimulate the economy. Payment would revive struggling businesses, protect jobs, and boost confidence in the federal procurement system.
In response, the Budget Office said it is reviewing verified claims and prioritising payment within available resources. Still, affected contractors remain skeptical, as previous promises have yielded little.
The growing moral and economic weight of the N720bn debt now tests the government’s credibility and its willingness to support local businesses that contribute to national development.
