FG sets Dec 20 deadline to pay contractors

File: The Minister of Works, David Umahi.

Kindly share this story:

The Federal Government on Thursday moved to calm rising tensions among road contractors, assuring that all outstanding payments will be cleared before December 20, 2025, following days of protests by contractors over mounting debts and stalled project financing.

The Minister of Works, David Umahi, who gave the assurance during the reopening of the repaired Keffi Flyover in Nasarawa State, said President Bola Tinubu had acknowledged the debt backlog and approved the constitution of a special committee to verify and settle all outstanding claims.

Contractors handling federal road projects had, in the last few days, staged protests at the Ministry of Finance, alleging prolonged non-payment for completed and ongoing works.

The contractors under the aegis of the All Indigenous Contractors Association of Nigeria staged a protest at the Federal Ministry of Finance over alleged unpaid funds for projects executed in 2024.

The association claimed the Federal Government owes contractors about N4 trillion, but is specifically demanding the release of N760bn, which it said the Minister of Finance, Wale Edun, had earlier pledged to pay in September.

The protesting contractors placed a symbolic coffin at the entrance of the ministry, saying it represented the hardship and deaths some members had suffered due to the prolonged non-payment.

But responding to their concerns, Umahi said protests were no longer necessary, insisting that President Tinubu had directed that all verified debts be paid within days.

He added that some contractors on the Maraba–Keffi axis, including China Harbour Engineering Company, were among those yet to be paid but would be captured in the upcoming disbursement.

He said, “Let me assure our contractors that Mr President yesterday (Wednesday), in fact, recognised that you have been owed and is setting up a committee to review all the debts.

“Please, there should be no more protests. You will be paid, Mr President has assured that you’ll be paid like the intervention we made on Maraba-Keffi. I know that two of the contractors have not been paid. But the President is aware, and efforts have been made, and before the 20th of December, you’ll be paid.”

In an unprecedented move, Umahi disclosed that the ministry had formally invited the Independent Corrupt Practices and Other Related Offences Commission and the Economic and Financial Crimes Commission to audit all ongoing and completed federal road projects across the 36 states and the FCT.

According to him, the step was aimed at enhancing transparency, restoring public confidence, and ensuring that payments reflect actual work done.

“I wrote to ICPC and submitted all the projects of Mr President and the Ministry of Works from the day I assumed office. We asked them to go through all the states and verify those projects. This is the first of its kind.

“We have also sent the same list to EFCC. We are very transparent in what we are doing under President Bola Ahmed Tinubu,” he noted.

He said the government was introducing an online platform for real-time monitoring of project status to allow citizens to track progress and raise concerns.

During the formal reopening of the Keffi Flyover, which collapsed on July 4 after a truck conveying an excavator damaged its structural components, Umahi commended the swift response of the President, revealing that the funds for the emergency works were released within 24 hours of the incident.

“Within 24 hours of briefing him, Mr President released the money for this bridge. It’s unprecedented,” he said.

The repaired flyover—an essential link between Abuja and Nasarawa—required reconstruction of the beam, parapet, and walkway, alongside the installation of a new gantry crash-prevention system.

Technical officials from the Federal Ministry of Works confirmed that the structure was now ready for public use, with safety systems already stopping attempted truck collisions.

The minister also defended the pace of work on the Abuja–Kano Road, describing recent public criticism as unfair. He said the original contract design was flawed and had been modified to include full concrete shoulders, adding that sections covering over 44 kilometres had been completed with existing funding.

Sections one and three now have about eight kilometres of completed concrete pavement, while a solar-lit 12-kilometre extension around Kano is nearing completion.

Umahi repeated his commitment to quality and transparency, saying stringent monitoring, concrete pavement technology, and tolling reforms would help Nigeria achieve durable roads and better cost efficiency.

He said the government was implementing a rigorous defect-liability regime, maintaining a 2.5 per cent retention fee until contractors demonstrated full compliance.

A business, investment, infrastructure and property correspondent currently with The PUNCH, Aina is a media professional with over three years experience

Kindly share this story:

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]

UPDATE NEWS: Nigerians can now invest ₦2.5million on premium domains and profit about ₦17-₦25Million. All earnings paid in US Dollars. Rather than wonder, 👉 click here to find out how it work (Be sure to ask for evidence of clients that have benefitted from this)

Stay informed and ahead of the curve! Follow The Punch Newspaper on WhatsApp for real-time updates, breaking news, and exclusive content. Don't miss a headline – join now!

Stay in the know—fast. Get instant alerts, breaking headlines, and exclusive stories with the Punch News App. Download now and never miss a beat.