FG moves to pay verified contractors

The Federal Government has initiated efforts to clear the backlog of payments owed to genuine contractors who executed projects for Ministries, Departments, and Agencies (MDAs)

This is coming amid rising concerns over delayed payments and impact on the economy.

In a statement in Wednesday in Abuja, the Director of Press and Public Relations at the Office of the Accountant General of the Federation (OAGF), Mr. Bawa Mokwa, disclosed that concrete steps are being taken to address outstanding obligations to contractors.

“The Federal Government has records of contracts executed by MDAs and is meticulous in the payment for these contracts to guarantee value for money spent,” the statement read. “Efforts are underway to pay for contracts duly awarded and completed according to specifications.”

Current estimates indicate that the Federal Government owes local contractor between N200 billion and N400 billion.

These unpaid debts are largely attributed to delayed budget releases, cash flow challenges, and procurement bottlenecks.

The exact figure is subject to change depending on government fiscal actions and policy decisions.

While acknowledging the backlog, the OAGF stressed that only contractors who followed the proper processes and delivered projects as specified will be eligible for payment.