The Chairman, House of Representatives Committee on Monitoring and Evaluation of House Standing and Ad hoc Committees, Hon. Obi Aguocha, has called on the Federal Government to urgently revisit its current policy on the mode of payment to contractors handling projects across the country.
In a statement on Friday, Hon. Aguocha—who represents Ikwuano/Umuahia North/Umuahia South Federal Constituency of Abia State—described the recent protest by aggrieved contractors under the aegis of the Concerned Local Contractors and the threat of a similar protest by the All Indigenous Contractors Association of Nigeria (AICAN) as a clear signal that the system requires urgent review.
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According to him, AICAN has revealed that over 90 per cent of the projects executed and completed on behalf of the Federal Government in 2024 remain unpaid, forcing contractors to struggle with mounting bank loans and rising interest rates.
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Hon. Aguocha stressed that if the central payment system domiciled in the Office of the Accountant General of the Federation (OAGF) and the Federal Ministry of Finance has failed to achieve the desired efficiency, then there is nothing wrong with reviewing the policy in order to reduce the hardship and challenges facing contractors.
“Non-payment of contractors not only erodes public trust in government’s ability to manage projects effectively but also delays execution, inflates costs, and places further strain on public resources. If urgent action is not taken, this prolonged issue will damage the reputation of both government and contractors, thereby undermining future collaboration,” he warned.
The lawmaker further noted that the situation has direct consequences for budgetary projects:
Contractors are reluctant to take up new assignments without assurances of timely payment.
Projects already approved in the appropriation act risk delays or abandonment.
Communities in dire need of infrastructure may be denied the benefits of government intervention.
Hon. Aguocha also expressed concern that, with only four months left in 2025, emphasis is still on settling 2024 projects, a backlog that he said undermines effective planning and disrupts the yearly budget cycle.
Honorable Aguocha bemoaned the fact that as at four months to end of the year, 2025, about 95 percent of projects nationwide are not cash backed for execution and wondering what happened to apporx $22 billion dollars borrowing transaction recently approved by the National Assembly for projects nationwide.
Aguocha further said that project execution is the surest way of bringing dividends of democracy to the grassroots and that everything must be done not to derail it and calling on the authorities concerned with managing the project funding to ensure the masses are not shortchanged through the non release of funds for projects already earmarked in the 2024/2025 appropriation act for execution.
