The Nigerian House of Representatives has summoned the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, over the persistent non-payment of debts owed to government contractors, which has reportedly paralyzed several ongoing infrastructure projects across the country.
The summons was issued following a resolution adopted by the House Committee on Public Procurement during a recent sitting in Abuja, amid growing concerns about the financial constraints contractors are facing despite the federal government’s claims of budgetary provisions for these obligations.
Chairman of the House Committee on Public Procurement, Hon. Jerry Alagbaso, who read the resolution on behalf of the committee, expressed disappointment that numerous federal contractors, especially those involved in capital-intensive projects such as roads, bridges, and power infrastructure, have not been paid for several months, in some cases up to a year. The lawmakers noted that this situation is creating a ripple effect across the economy, with job losses and rising project abandonment.
“Contractors who have committed substantial financial resources into national development projects are being suffocated due to delayed payments. This is unacceptable. The government must act transparently and responsibly,” Alagbaso stated.
According to him, the House intends to get full clarification from both the CBN and the Ministry of Finance on why certified payments for completed or ongoing projects have not been processed, despite being captured in the national budget and reportedly approved by relevant Ministries, Departments, and Agencies (MDAs).
The lawmakers are demanding explanations for the alleged bottlenecks in the payment process, pointing to concerns over the efficacy of the Treasury Single Account (TSA), foreign exchange constraints, and suspected prioritization of other expenditures over contractor payments.
During the debate that preceded the resolution, several lawmakers shared firsthand accounts from constituents and contractors who are currently grappling with halted projects and mounting bank debts. Hon. Miriam Onuoha (APC, Imo) lamented the stalling of a vital rural electrification project in her constituency due to financial starvation. “This is not just a bureaucratic issue; it is about the daily survival of people who depend on these projects for employment and essential services,” she said.
Another member, Hon. Ibrahim Isiaka (APC, Ogun), questioned whether the CBN’s monetary tightening measures are contributing to the cash flow problems affecting capital projects. “There’s a need to align fiscal and monetary policy. Otherwise, we are risking economic contraction despite our development ambitions,” he cautioned.
The House also resolved to invite officials from the Budget Office, Office of the Accountant General of the Federation, and key infrastructure MDAs such as the Ministry of Works and Ministry of Power, to provide further insight into the issue and map out a path forward.
Sources close to the Ministry of Finance suggest that delays may be linked to current revenue shortfalls, as the federal government struggles to meet its fiscal obligations amidst falling oil revenues, high debt servicing costs, and recent macroeconomic reforms that have squeezed available liquidity. However, critics argue that strategic infrastructure spending should not be among the casualties.
Speaking anonymously, a senior official in the Federal Ministry of Works confirmed that many contractors have slowed down their operations or pulled out altogether due to non-payment. “We’re talking about multi-billion-naira projects where contractors have financed up to 60% from commercial banks at high-interest rates. It’s becoming unsustainable.”
Some industry experts have raised concerns that the situation could severely impact President Bola Tinubu’s ambitious infrastructure and economic renewal agenda, which hinges on revamping national assets and boosting investor confidence.
Dr. Akinyele Ige, a development economist, warned that such delays could trigger a credibility crisis for the federal government. “If contractors begin to see Nigeria as high-risk in terms of receivables, even local ones will demand advance payments or abandon government contracts altogether. That would escalate project costs and timelines, ultimately hurting the public.”
The House Committee is expected to hold a hearing within the next two weeks, during which Cardoso and Edun will be required to provide detailed briefings on the status of contractor payments, current account balances, and efforts being made to resolve the impasse.
Meanwhile, contractor associations such as the Federation of Construction Contractors in Nigeria (FCCN) have welcomed the intervention by the House, calling it a step in the right direction. In a press statement issued on Friday, the FCCN urged the federal government to “honor its contractual obligations without further delays to avoid a total collapse of the sector.”
As the date of the investigative hearing approaches, all eyes are now on the apex bank and the Finance Ministry to provide clarity on what has gone wrong — and more importantly, what concrete steps will be taken to ensure that contractors are paid, projects are completed, and the nation’s economic momentum is not lost.
