Lawmakers express cautious optimism over planned disbursement to clear backlog of project funds
By Rejoice Peterside
There are fresh indications that contractors owed by the Federal Government for projects executed under the 2024 fiscal year may soon begin to receive payments, as members of the House of Representatives say funds could be released within the week.
The development follows provisions in the 2026 Appropriation Bill, where the Federal Government earmarked N1.8tn to settle outstanding liabilities, including N1.7tn for 2024 capital projects and N100bn for other debts owed to local contractors.
Lawmakers, who spoke on the development, expressed cautious optimism but noted that details of the expected disbursement remain unclear.
The Leader of the North-West caucus in the House, Sada Soli, confirmed awareness of the planned payments but said the exact figures to be released have not been disclosed.
“I am aware of it, but I don’t know how much they’re talking about or committing to the implementation of the budget,” he said.
Similarly, the lawmaker representing Ideato North/Ideato South Federal Constituency of Imo State, Ikenga Ugochinyere, highlighted the impact of delayed payments on constituency projects and lawmakers’ credibility.
“Lawmakers have suffered from delays in paying contractors working to execute constituency projects, but I have been told certain payments will likely be made this week. I hope it comes to light to help complete development projects across constituencies,” he said.
Also speaking, Terseer Ugbor, who represents Kwande/Ushongo Federal Constituency in Benue State, expressed frustration over repeated assurances by government officials which have yet to materialise.
“It’s been failed promises, but we hope contractors will start receiving payments soon. So far, I can’t confirm any payments yet,” he said.
Another lawmaker, who declined to be named, hinted that a portion of the funds could be released before the end of the week but admitted uncertainty over the exact amount.
The payment crisis dates back to the 2024 budget cycle, when hundreds of contractors executed capital and constituency-based projects across the country, many tied to zonal intervention programmes facilitated by federal lawmakers.
Despite completing and delivering these projects, many contractors have struggled to receive payment, leading to financial strain, with several relying on loans to fund the projects.
The situation persisted throughout 2025, despite repeated assurances from the Minister of Finance, Wale Edun, and the Accountant-General of the Federation, Shamseldeen Ogunjimi, that arrangements were underway to clear the backlog.
The delays have stalled ongoing and planned projects and placed lawmakers under pressure from constituents, many of whom blamed them for abandoned or incomplete projects.
Frustration over the unpaid debts led to protests by contractors at the National Assembly Complex in December 2025 and January 2026, with demonstrators accusing the government of neglecting indigenous contractors.
With the latest indication of imminent payments, stakeholders are hopeful that the backlog will begin to clear, enabling contractors to stabilise and resume critical infrastructure projects nationwide.
