The Chairman of the House of Representatives Committee on Monitoring and Evaluation, Hon. Obi Aguocha, has urged President Bola Tinubu and the Federal Government to urgently resolve the delayed payments to contractors, warning that failure to act could plunge Nigeria’s infrastructure development into a deeper crisis.
Aguocha, who represents Ikwuano/Umuahia North/Umuahia South Federal Constituency in Abia State, pointed to the recent protests by members of the Concerned Local Contractors and looming demonstrations by the All Indigenous Contractors Association of Nigeria (AICAN) as red flags that require immediate attention.
According to AICAN, over 90% of completed federal projects in 2024 remain unpaid, leaving contractors burdened with high-interest loans and risking business collapse. Aguocha criticized the inefficiencies in the current centralized payment system housed under the Office of the Accountant General of the Federation (OAGF) and the Federal Ministry of Finance.
“If this system isn’t delivering results, it’s time for a policy review,” he stated. “Non-payment erodes public trust, stalls projects, inflates costs, and wastes valuable public resources.”
The lawmaker warned that without swift intervention, this prolonged funding bottleneck would damage both the government’s reputation and its ability to collaborate effectively with contractors.
He also expressed concern about the state of the 2025 budget cycle, revealing that nearly 95% of projects remain unfunded, even with just four months left in the year. Aguocha questioned the fate of the recently approved $22 billion loan meant for nationwide projects, asking why funds haven’t been disbursed accordingly.
“Contractors won’t take on new assignments without timely payment guarantees,” he said. “This puts crucial infrastructure projects and the communities relying on them at risk.”
Emphasizing that project execution is vital for delivering the dividends of democracy, Aguocha called on relevant authorities to ensure full implementation of the 2024/2025 Appropriation Act and prevent further setbacks in national development.
