
The Nigerian Federal Government may soon begin making part payments to contractors owed for capital projects executed in the 2024 fiscal year, according to members of the House of Representatives. The 2026 Appropriation Bill earmarked N1.8tn to settle outstanding liabilities, including N1.7tn for 2024 capital projects and N100bn for other local contractor debts. Lawmakers, including Sada Soli, Leader of the North-West caucus, and Ikenga Ugochinyere, representing Ideato North/Ideato South Federal Constituency, expressed cautious optimism that payments would commence this week, though specific amounts remain undisclosed. The delay in payments has caused significant financial strain for indigenous contractors and impacted the credibility of lawmakers regarding constituency projects. Terseer Ugbor, representing Kwande/Ushongo Federal Constituency, voiced frustration over previous unfulfilled promises. The payment crisis dates back to the 2024 budget cycle, with contractors completing projects but struggling to receive payment. Despite assurances from Minister of Finance Wale Edun and Accountant-General of the Federation Shamseldeen Ogunjimi, disbursements did not materialize, leading to stalled projects and protests by aggrieved contractors in December 2025 and January 2026 at the National Assembly Complex.
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This summary was AI-generated from a story originally published by Punch Nigeria.