KEY POINTS
- Finance Minister Taiwo Oyedele met indigenous contractors in Abuja and pledged a transparent settlement plan.
- The talks focused on capital expenditure debts and a credible framework to verify and clear claims.
- Oyedele said resolving the debts is critical for confidence in government, jobs and business continuity.
Finance Minister Taiwo Oyedele on Tuesday opened fresh talks with indigenous contractors over the Federal Government’s mounting debt to local builders, pledging a transparent and structured settlement plan that he said would protect fiscal discipline while restoring trust.
Oyedele, who serves as both Minister of Finance and Coordinating Minister of the Economy, met representatives of the All-Indigenous Contractors Association of Nigeria in Abuja and acknowledged that delayed payments, contract variations and ongoing fiscal reforms have squeezed local firms.
Now the meeting marks the clearest signal yet that the Tinubu administration plans to clear a backlog that has stalled projects, choked cash flow at indigenous companies and dented contractor confidence in government.
Verified claims first
According to a statement issued by ministry spokesperson Efe Ovuakporie, Oyedele told the contractors that only verified obligations would be settled, and that the process would be reconciled jointly with relevant institutions.
Specifically, the engagement focused on capital expenditure debts and the need for a credible framework to confirm legitimate claims before disbursement. Moreover, Oyedele said the government wants to balance fiscal realities with its responsibility to honor commitments.
“Resolving these obligations is important not just for contractors, but for confidence in government, job creation, business continuity and overall economic stability,” the minister said.
Reform pressure on contractors
Indeed, the contractor backlog has emerged as one of the most politically sensitive fallouts of the Tinubu administration’s fiscal reforms. Many indigenous firms took on bank loans to deliver projects and now face mounting interest costs as receivables age.
However, Oyedele said reforms will continue, even as the government tries to soften the blow on stakeholders. The minister stressed that bold measures to stabilize the economy remain necessary, while implementation will factor in disruptions.
Meanwhile, contractors at the meeting said the renewed dialogue gives them room to plan, after months of uncertainty over when, how and whether their invoices would clear.
Local contractors handle a sizable share of Nigeria’s road, housing and water infrastructure work, much of which has slowed amid payment delays. Today, several federal projects across the country sit at varying stages of completion, hostage to receivables tied up at the treasury.
Additionally, contract variations, often triggered by inflation and foreign exchange swings, have widened the gap between original contract values and current execution costs. The minister acknowledged those pressures and said the new framework would address variations alongside core debt.
A confidence test
The Tinubu administration’s broader fiscal program, including subsidy removal and tax reforms led by Oyedele earlier in his career, has weighed on contractor working capital. Together, the reforms and payment delays have made local builders cautious about taking on fresh federal jobs.
Now the contractors say they want a clear, sustainable payment structure, not piecemeal disbursements. Oyedele’s response, attendees said, struck a more concrete tone than past engagements. Furthermore, contractor representatives commended the dialogue and said they remain ready to deliver projects across the country once the framework rolls out.
Whether the plan moves from statement to disbursement will determine its credibility. Yet for now, the indigenous contractors leave Abuja with at least a fresh promise that their unpaid invoices will not stay buried in the books.
