Tinubu establishes special committee as contractor debt rises to N1.5trn

President Bola Tinubu has established a multi-ministerial committee to tackle the growing crisis surrounding unpaid federal contractors, a debt burden currently estimated at a staggering N1.5 trillion.

The decision followed Wednesday’s Federal Executive Council (FEC) meeting, where the issue was brought to the fore. According to Bayo Onanuga, the President’s Special Adviser on Information and Strategy, Tinubu expressed deep dissatisfaction upon discovering that more than 2,000 contractors—many of them indigenous companies—have not been paid for projects they have already completed.

Onanuga said the president was briefed by Adebowale Adedokun, director-general of the Bureau of Public Procurement (BPP), who detailed the extent of the outstanding obligations.

According to the presidential spokesperson, the committee comprises key government officials tasked with developing a clear plan for the prompt release of the outstanding funds.

The committee members are Wale Edun, minister of finance and coordinating minister of the economy; Atiku Bagudu, minister of budget and economic planning; Tanimu Yakubu, director-general of the budget office; Dave Umahi, minister of works; Ahmed Dangiwa, minister of housing and urban development; and Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS).

Onanuga said the committee has been given a mandate to urgently review the payment delays, identify funding sources, and present the President with a viable solution for releasing the owed funds.

He said Tinubu emphasised the need for swift action and indicated that the federal government is open to borrowing—as a sovereign state—to settle verified contractor debts if necessary.