A coalition of civil society organisations has called on the Minister of Finance, Wale Edun, and the Accountant General of the Federation, Shamsedeen Babatunde Ogunjimi, to begin immediate disbursements under the 2025 capital budget to settle indigenous contractors owed for completed projects.
The Coalition for Equity in Public Contracts, in a statement issued Friday in Abuja by its Convener, Dr. Salisu Garba, titled “CSOs to Edun, Ogunjimi: Honour Your Bond With Indigenous Contractors, Commence 2025 Capital Budget,” said many contractors remain stranded after executing government projects in good faith.
Recall that PUNCH Online had on Thursday reported that the local contractors under the All Indigenous Contractors Association of Nigeria, on Wednesday, staged a protest at the Headquarters of the Ministry of Finance in Abuja, to demand payment for capital projects executed in 2024, amounting to about N4tn.
“For months, contractors have executed projects across the country in good faith, trusting that government will honour its bond under the Appropriation Act. Yet they have been left stranded, many of them struggling to repay loans taken to finance these projects.
“The Deputy Speaker’s intervention is commendable, but Nigerians are tired of promises. This is the moment for the Finance Minister and the Accountant General to prove they are serious by beginning immediate disbursements under the 2025 capital budget,” Garba said.
The group welcomed the resolution brokered by Deputy Speaker of the House of Representatives, Benjamin Kalu, between the Finance Ministry and the Office of the Accountant General over delayed payments, but warned that contractors and their employees can no longer endure waiting while officials “trade blame.”
“Every kilometre of road left unpaid for, every school block or hospital wing abandoned due to delayed payment, translates into jobs lost and communities short-changed.
“Indigenous contractors are the backbone of local development, and frustrating them undermines the entire spirit of fiscal federalism. Government must remember that the capital budget is not a token gesture; it is the lifeblood of Nigeria’s development,” the Friday statement read.
The coalition accused government of selectively applying budgetary provisions and warned that the pattern undermines public trust.
“What we see today is a dangerous pattern where contractors with legal claims under the Appropriation Act are ignored while other off-budget expenditures are prioritised.
“This amounts to executive indiscipline. It is precisely why parliament intervened, and why Nigerians must now insist on visible compliance from the Finance Ministry and the Office of the Accountant General,” Garba said.
It further cautioned that the credibility of parliament is also on the line.
“This matter has now moved beyond contractors to the credibility of parliament itself. Nigerians will hold the National Assembly accountable should Edun and Ogunjimi renege on their word. Having stepped in to resolve the impasse, lawmakers must ensure compliance. Anything less will be interpreted as complicity,” Garba said.
The coalition warned of ripple effects on the economy, saying banks are tightening credit to indigenous firms due to government’s delay in payments.
“This is how a vicious cycle begins: government delays payments, contractors default on loans, banks cut lending, and the economy contracts further. Nigeria cannot afford this spiral. That is why we insist that the release of the 2025 capital budget must begin immediately,” the statement added.
It urged President Bola Tinubu to enforce fiscal discipline by ensuring Edun and Ogunjimi act promptly.
“The President has spoken repeatedly about reforms and fiscal discipline. This is the litmus test. A government that cannot honour its contracts cannot expect to win trust either from citizens or investors. That is why we are watching closely, and we will hold both the Finance Ministry and the National Assembly to their word,” Garba concluded.
