FG disburses N152 billion to contractors, promises fiscal discipline

The Federal Ministry of Finance has confirmed the disbursement of N152 billion to contractors for verified and duly certified contracts.
While confirming the payment in Abuja yesterday, the Minister of State for Finance, Dr Doris Uzoka-Anite,maintained that all payments were processed in line with existing laws, financial regulations and public service rules.

The minister said the payments followed “rigorous verification procedures” designed to protect public funds and uphold transparency and accountability in government spending.

The confirmation came a few weeks after a series of protests by contractors over delayed payments for executed federal projects, a situation that increased pressure on the government.

In the past year, several contractors have warned that prolonged payment delays have disrupted project timelines, strained cash flows and, in some cases, forced layoffs and work stoppages.

Industry groups have also raised concerns that unpaid obligations could undermine confidence in public procurement at a time when the administration is pushing infrastructure delivery as a key pillar of economic recovery.

Acknowledging these concerns, the minister said the ministry was aware of the financial pressure the delays may have placed on contractors and reaffirmed the commitment to sustained dialogue and engagement to resolve outstanding issues.

“We remain committed to continuous engagement with stakeholders to find effective solutions to all conflicts arising from payment delays,” she noted.

However, she also appealed for restraint, urging contractors to respect established processes and personnel, noting that officials have continued to carry out their duties despite what it described as “varying degrees of intimidation and harassment”, 

She reiterated its assurance that all legitimate payment requests would continue to be processed “timely, consistently, and strictly in line with due process.”

There are observations that the confirmation of the N152 billion disbursement is likely aimed at reining in anxieties and reinforcing the government’s commitment to fiscal discipline, even as calls grow for faster clearance of outstanding obligations.

For contractors, the key test will be whether ongoing engagements translate into quicker payments and clearer timelines. An investment banker, Tolukope Alayande, noted that the ripple effects extend beyond contractors themselves.

Artisans, suppliers, transporters and casual labourers linked to government projects suffer income losses, while banks face rising non-performing loans tied to unpaid contracts.

Alayande said the cycle contributes to job losses and slows economic recovery.He further held that the problem has been exacerbated by weak budget implementation, cash-flow constraints and the practice of rolling over unpaid obligations into subsequent fiscal years without clear timelines for settlement.

Contractors also cite bureaucratic delays in certification, disputes over variation claims and inconsistent application of procurement rules.

Several contractor associations have called on the Federal Government to conduct a comprehensive audit of outstanding liabilities, prioritise payment for completed projects and enforce strict timelines for contract certification and settlement.