Senate Demands Changes to End Contractor Payment Delays

By 𝔸bdulrazak Tomiwa

The Senate has raised the alarm over delayed payments to contractors, which have stalled vital infrastructure projects across Nigeria. 

Lawmakers warned that these bottlenecks waste public funds and destroy the credibility of government institutions.

Senators criticized the “envelope budgeting” system for creating financial hurdles even when funds are available. They noted that long payment wait times lead to project abandonment and higher costs due to inflation.

The Finance Committee flagged the massive debts owed to local contractors, which have crippled the construction sector.

They demanded a transparent roadmap from the Accountant-General to clear these backlogs and stop further debt accumulation.

Government officials blamed the delays on ministries awarding contracts without secured funding. However, the Senate insisted the underlying system is fundamentally flawed and requires an urgent, streamlined financial reform.

The Senate is now pushing for a “single budget” cycle to stop rolling over unpaid contracts into new years. The goal is to ensure every project is backed by immediate revenue starting in April 2026.

Lawmakers warned that future budget approvals for agencies may be withheld until they implement effective payment reforms.

The priority is to ensure projects are completed on schedule and within their original budgets.