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Home»News»Groups Urge FG to Pay Local Contractors, Kickstart 2025 Projects
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Groups Urge FG to Pay Local Contractors, Kickstart 2025 Projects

meridianspyBy meridianspySeptember 5, 2025No Comments4 Mins Read
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A coalition of civil society organisations has urged the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Accountant General of the Federation, Shamsedeen Babatunde Ogunjimi, to honour their commitments to indigenous contractors by immediately commencing the release of funds under the 2025 capital budget.

 

The group said Nigerians will hold both the executive and legislature accountable should promises recently made by top officials be allowed to collapse into rhetoric.

 

In a statement issued in Abuja on Friday, the Coalition for Equity in Public Contracts (CEPC), through its Convener, Dr. Salisu Garba, said it welcomed the resolution brokered by the Deputy Speaker of the House of Representatives, Benjamin Kalu, between the Finance Ministry and the Office of the Accountant General over delayed payments to contractors.

 

But the coalition stressed that words must now translate into action, warning that contractors and their employees can no longer endure endless waiting while government officials trade blame.

 

“For months, contractors have executed projects across the country in good faith, trusting that government will honour its bond under the Appropriation Act. Yet they have been left stranded, many of them struggling to repay loans taken to finance these projects. The Deputy Speaker’s intervention is commendable, but Nigerians are tired of promises. This is the moment for the Finance Minister and the Accountant General to prove they are serious by beginning immediate disbursements under the 2025 capital budget,” Dr. Garba said.

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The group noted that indigenous contractors play a pivotal role in infrastructure delivery and job creation, and warned that persistent neglect would not only undermine confidence in government processes but also deepen economic hardship.

 

“Every kilometre of road left unpaid for, every school block or hospital wing abandoned due to delayed payment, translates into jobs lost and communities short-changed. Indigenous contractors are the backbone of local development, and frustrating them undermines the entire spirit of fiscal federalism. Government must remember that the capital budget is not a token gesture; it is the lifeblood of Nigeria’s development,” the statement read.

 

The coalition said while it recognised the fiscal pressures facing the country, there could be no justification for selectively applying budgetary provisions, especially when projects duly captured and executed under law are left in limbo.

 

“What we see today is a dangerous pattern where contractors with legal claims under the Appropriation Act are ignored while other off-budget expenditures are prioritised. This amounts to executive indiscipline. It is precisely why parliament intervened, and why Nigerians must now insist on visible compliance from the Finance Ministry and the Office of the Accountant General,” Garba stressed.

 

The group further reminded the National Assembly of its oversight responsibility, stating that Nigerians will not accept excuses if the agreements brokered by the Deputy Speaker collapse.

 

“This matter has now moved beyond contractors to the credibility of parliament itself. Nigerians will hold the National Assembly accountable should Edun and Ogunjimi renege on their word. Having stepped in to resolve the impasse, lawmakers must ensure compliance. Anything less will be interpreted as complicity,” Garba said.

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The coalition also warned of the ripple effects on the broader economy if contractors are not paid promptly.

 

According to the group, banks are already tightening credit to indigenous firms, citing fears that government will delay or default on obligations, thereby worsening liquidity pressures in the economy.

 

“This is how a vicious cycle begins: government delays payments, contractors default on loans, banks cut lending, and the economy contracts further. Nigeria cannot afford this spiral. That is why we insist that the release of the 2025 capital budget must begin immediately,” the statement added.

 

The coalition urged President Bola Tinubu to reinforce his administration’s pledge of fiscal discipline by ensuring that Edun and Ogunjimi act swiftly. It argued that reforming the economy requires not only policy pronouncements but also respect for lawful obligations to citizens.

 

“The President has spoken repeatedly about reforms and fiscal discipline. This is the litmus test. A government that cannot honour its contracts cannot expect to win trust either from citizens or investors. That is why we are watching closely, and we will hold both the Finance Ministry and the National Assembly to their word,” Garba said.

 

As the 2025 fiscal year gathers momentum, contractors, civil society, and ordinary Nigerians are now waiting for evidence that government promises will be matched by decisive action. For them, the credibility of both the executive and legislature is on the line.

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