Benjamin Kalu: FG to begin payment of debt owed local contractors next week

The federal government will begin paying outstanding debts owed to local contractors next week, Benjamin Kalu, deputy speaker of the house of representatives, has said.

Over 5,000 contractors under the All Indigenous Contractors Association of Nigeria have been in dispute with the government over unpaid fees for capital projects executed under the 2024 budget.

The contractors laid siege for two days at the finance ministry headquarters in Abuja, demanding settlement of their claims.

Relief came on Thursday after a meeting convened by Kalu with Wale Edun, minister of finance and coordinating minister of the economy; Shamsudeen Ogunjimi, accountant general of the federation; and the permanent secretary, special duties.

Babatunde Seun, general secretary of the association, told Daily Times after the meeting that payments would begin in batches, starting with verified claims from February to May 2025.

He said subsequent months, beginning from June, will follow.

According to him, Kalu assured the contractors that anyone who had fully executed a project would be paid.

Ogunjimi, the accountant general, also promised that “adequate funding” has been secured and pledged to authorise MDAs to fast-track payments once he returns to office on Monday, September 8.

Kalu urged the contractors to complete projects promptly and avoid cutting corners, warning that quality delivery must not be compromised.

He also pledged that the national assembly would respond swiftly to their concerns.

“We are happy because all we wanted to hear from the government is assurance of payment and we are happy to hear that,” Seun said.

Earlier, the association lamented that many members are indebted to banks for loans taken to execute projects, while others are facing economic and health challenges.