FG To Pay All Contractors By December 20, Says Umahi

The Federal Government has assured all contractors handling federal road projects across the country that their outstanding payments will be cleared on or before December 20, 2025, in a move aimed at stabilising ongoing infrastructure works and ending rising tensions in the construction sector

Minister of Works, David Umahi, gave the assurance during an inspection tour of federal road projects, where he addressed contractors who have been mounting pressure on the government over delayed payments. He noted that President Bola Ahmed Tinubu had approved immediate measures to fast-track verification and disbursement of funds to all contractors with genuine and certified claims. Umahi explained that a special inter-agency verification committee had already been constituted to scrutinise all pending certificates, adding that payment will commence immediately after due validation. He appealed to contractors to exercise patience, insisting that the government is committed to honouring its obligations. According to the minister, the December 20 deadline was set after a comprehensive review of all financial commitments and the need to ensure transparency in the payment process. He further disclosed that relevant financial institutions, including the Office of the Accountant-General of the Federation, are already working with the ministry to meet the deadline. The minister also hinted that the government has invited anti-graft agencies to participate in the review process in order to eliminate fraudulent claims and ensure that only verified contractors receive payment. This, he said, is part of the administration’s broader reforms designed to strengthen accountability in public project financing. Contractors across the country have in recent weeks raised concerns over delays in payment for completed works, warning that prolonged withholding of funds could affect ongoing projects and lead to demobilisation of equipment. Industry players say the government’s assurance, if fulfilled, will provide much-needed relief and spur progress across several major road corridors. Umahi, however, emphasised that the Tinubu administration is committed to accelerating infrastructure delivery and will continue to monitor contractors to ensure timely completion of all awarded projects. With the government’s pledge, attention now shifts to the verification committee and the ability of relevant agencies to deliver on the December 20 timeline.