There are fresh indications that contractors owed by the Federal Government for capital projects executed in the 2024 fiscal year may soon receive part payment, as members of the House of Representatives say funds could be released this week.
The Federal Government had earmarked N1.8tn in the 2026 Appropriation Bill to settle outstanding liabilities to contractors, comprising a N1.7tn allocation for 2024 capital projects and N100bn for other local contractor debts.
The lawmakers, who spoke separately, declined to state the amount likely to be disbursed but expressed cautious optimism that the long-awaited payments would finally begin.
The development comes amid mounting pressure on the Federal Government over the failure to clear verified debts owed to indigenous contractors, many of whom have complained of severe financial strain after delivering projects across the country.
Leader of the North-West caucus in the House, Sada Soli, confirmed awareness of imminent payments but said details remained unclear.
“I am aware of it (likely payment), but I don’t know how much they’re talking and committing to the implementation of the budget,” Soli, who represents Jibia/Kaita Federal Constituency of Katsina State, said.
Also speaking, the lawmaker representing Ideato North/Ideato South Federal Constituency of Imo State, Ikenga Ugochinyere, lamented the impact of the delayed payments on constituency projects and lawmakers’ credibility 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,” Ugochinyere told The PUNCH.
Similarly, Terseer Ugbor, who represents Kwande/Ushongo Federal Constituency in Benue State, expressed frustration over repeated assurances by government officials which have yet to materialise.
“It’s been failed promises, but we hope contractors will start receiving payments soon. So far, I can’t confirm any payments yet,” he said.
Also contributing, a lawmaker who declined to be named said, “Some amounts of money may be released on Friday, but no one knows how much it is, for now.”
He called on the Federal Government to do the needful by paying all outstanding debt to contractors so that new projects can begin.
The payment crisis dates back to the 2024 budget cycle, during which hundreds of contractors executed capital and constituency-based projects, many tied to zonal intervention projects facilitated by federal lawmakers.
Despite completing and, in several cases, delivering these projects, contractors have struggled to receive payment, triggering widespread dissatisfaction across the country.
The situation worsened throughout 2025, as repeated assurances from the Ministry of Finance and the Office of the Accountant-General failed to translate into actual disbursements.
The Minister of Finance, Wale Edun, and the Accountant-General of the Federation, Shamseldeen Ogunjimi, had at various times indicated that arrangements were underway to clear the backlog, but payments did not materialise as expected.
The delays not only stalled ongoing and planned projects but also placed lawmakers under intense pressure from their constituents, many of whom blamed them for the non-completion of projects already awarded and executed.
Frustration over the unpaid debts eventually spilt onto the streets of the National Assembly Complex, where aggrieved contractors staged protests in December 2025 and January 2026.
Carrying placards and chanting slogans, the protesters accused the government of neglecting indigenous contractors and jeopardising local businesses that had taken loans to finance public projects.
