President Bola Tinubu has directed a multi-ministerial committee to draw up a clear strategy for resolving the ₦1.5 trillion debt owed to federal contractors, describing the prolonged backlog as unacceptable.
The directive followed a briefing that revealed more than 2,000 contractors have remained unpaid for extended periods, stalling key infrastructure projects and weakening confidence in government procurement processes.
According to senior officials familiar with the meeting, the President expressed firm displeasure over the size of the outstanding liability and instructed the committee to identify funding options, verify the claims, and submit a comprehensive repayment framework.
The committee is expected to work with the Ministry of Finance, the Budget Office, and relevant MDAs to determine the authenticity of pending invoices, prioritise critical projects, and draw up a phased settlement plan that aligns with current fiscal conditions.
The administration has been under increasing pressure from contractors and industry groups, who warn that the unresolved debt has disrupted operations, triggered job losses, and pushed several firms toward insolvency.
Government insiders say the President wants the repayment blueprint concluded quickly to restore confidence, accelerate stalled projects, and prevent further economic strain within the construction and service-delivery sectors.
