Smiles for Some, Waiting for Others as FG Begins ₦1.4 Trillion Contractor Debt Clearance
The Federal Government has commenced payment of contractors who executed projects in 2024 and had their payment details uploaded between November and December last year, leaving others from the same period still awaiting payment due to delayed processing.
An anonymous contractor told Unfiltered Reporters that he had received his payment after months of waiting.
“I can confirm that the money has hit my account. This is a huge relief after all the financial strain,” he said.
According to government sources, all contractors in the November–December 2024 batch have now been fully paid. However, another group who also completed projects last year but had their payment uploads processed in February and March 2025 are yet to receive their funds.
The Federal Government is preparing to release ₦650 billion for the February–March batch, an amount expected to settle between 70 and 90 per cent of the outstanding debts.
Officials say an additional ₦750 billion will be disbursed later to cover payments for contractors whose uploads were processed between May and June.
This phased payment plan forms part of a larger ₦1.4 trillion debt clearance initiative by the Tinubu administration aimed at boosting contractor confidence, stimulating economic activity, and demonstrating fiscal discipline.
In the past 13 months, the government has reduced Nigeria’s debt service-to-revenue ratio from 97 per cent to 68 per cent, while the Debt Management Office reports a 15 per cent drop in total debt stock in dollar terms in the first quarter of 2024. The country’s public debt, covering both external and domestic borrowings, fell from $108.2 billion to $94.2 billion as of December 31, 2024.
The administration has also pursued reforms in the non-oil sector, passed the Nigerian Industry Reform Bill, and launched initiatives to expand credit access and support small businesses. It has additionally issued a ₦4 trillion bond to clear legacy debts owed to Generation Companies (Gencos), in a bid to restore investor confidence and sustain economic growth.
