Key points
- Lawmakers hint at possible release of funds this week to settle contractor debts.
- Federal Government earmarked ₦1.8tn in 2026 budget for outstanding liabilities.
- Delayed payments have strained contractors and stalled nationwide projects.
Main story
Members of the House of Representatives have indicated that the Federal Government may soon begin disbursing funds to settle outstanding debts owed to contractors, raising hopes for relief after months of delays.
The lawmakers said part payments could be released as early as this week, although the exact amount remains unclear.
The Federal Government had allocated ₦1.8 trillion in the 2026 Appropriation Bill to address the backlog, including ₦1.7 trillion for capital projects executed in the 2024 fiscal year and ₦100 billion for other local contractor liabilities.
Confirming the development, a member of the House representing Jibia/Kaita Federal Constituency, Sada Soli, said he was aware of plans for payment but could not specify the details.
“I am aware of it, but I don’t know how much they’re talking and committing to the implementation of the budget,” he said.
Similarly, the lawmaker representing Ideato North/Ideato South Federal Constituency, Ikenga Ugochinyere, expressed optimism that payments would commence soon to ease the burden on contractors and facilitate project completion.
“Lawmakers have suffered from delays… I have been told certain payments will likely be made this week,” he said.
Also speaking, Terseer Ugbor, who represents Kwande/Ushongo Federal Constituency, described the situation as frustrating, noting that previous assurances had yet to translate into actual disbursements.
The issues
The delay in settling contractor debts has become a major fiscal and political concern, with many indigenous contractors facing severe financial strain after executing government projects.
The situation has also stalled infrastructure development across the country, as contractors struggle to mobilise resources for ongoing and new projects.
Repeated assurances from government agencies have failed to yield results, raising concerns about budget implementation and fiscal discipline.
What’s being said
Lawmakers say the delay has not only affected contractors but also undermined their credibility before constituents, particularly in relation to constituency projects.
A senior legislator, who spoke anonymously, said funds could be released within the week but noted uncertainty around the scale of disbursement.
The Minister of Finance, Wale Edun, and the Accountant-General of the Federation, Shamseldeen Ogunjimi, had previously assured that arrangements were in place to clear the backlog.
However, contractors remain cautious after earlier promises failed to materialise.
What’s next
If funds are released as expected, partial payments to contractors could begin immediately, with further disbursements likely tied to budget implementation timelines.
The Federal Government may also face increased pressure to ensure full settlement of verified debts to restore confidence and stimulate project delivery.
Bottom line
The prospect of imminent payments offers relief to contractors and lawmakers alike, but credibility will depend on actual disbursement. Clearing the ₦1.8tn backlog remains critical to reviving stalled projects and restoring trust in government commitments.
