Oyedele plans structured settlement of N4trn contractors’ debt

MINISTER of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, has initiated steps to end a protracted dispute with local contractors, promising a more transparent and fiscally disciplined plan to settle over N4 trillion in outstanding government obligations while sustaining ongoing economic reforms.

Following a meeting in Abuja, Oyedele said authorities would adopt a fair, transparent, and structured process to address verified claims linked to capital projects, signalling a move towards stronger alignment between fiscal management and contractor payments.

The discussions, which included top finance officials and representatives of the All-Indigenous Contractors Association of Nigeria, underscore the administration’s effort to clear arrears without undermining its broader agenda of stabilising public finances. The dispute has persisted for years, with contractors pointing to delayed payments, cost escalations, and policy uncertainties as major obstacles to project completion.

READ ALSO: Nigerian contractors vow to continue protests after govt paid N152bn

Oyedele emphasised that resolving the liabilities extends beyond contractors, noting its importance for public trust, job creation, business continuity, and overall economic stability.

Nigeria, Africa’s largest economy, is currently navigating a reform phase focused on boosting revenue, streamlining expenditure, and rebuilding investor confidence.

While these reforms have received measured support from global observers, they have also tightened liquidity in sectors reliant on government contracts, particularly construction and infrastructure.

Sources familiar with the talks said the government is reconciling claims through institutions such as the finance ministry and the accountant-general’s office, prioritising verification of liabilities before scheduling payments. This approach reflects an attempt to balance fulfilling obligations with managing fiscal pressures in a high-debt, low-revenue environment.

Oyedele acknowledged contractors’ concerns over cash flow constraints and project delays caused by unpaid invoices, adding that the government plans to introduce a clearer framework for settling obligations going forward.

The proposed framework will prioritise verified claims and align disbursements with available resources, helping to prevent a buildup of future arrears.

READ ALSO: Months after denial, Taiwo Oyedele finally admits errors in new tax laws

He reiterated that local contractors remain vital to infrastructure delivery and economic growth, stressing the government’s commitment to resolving all outstanding issues through structured engagement within fiscal responsibility limits.

Contractors who attended the meeting described the renewed dialogue as a positive step toward rebuilding trust and ensuring continuity in project execution, as many firms have faced financial strain due to prolonged payment delays.

Although no timeline has been set for clearing the backlog, officials said ongoing consultations will determine the final structure of the repayment plan.