Senate Demands Government Explain Unpaid Contractors' Debts in One Week

The Nigerian Senate has given the federal government seven days to provide a detailed breakdown of outstanding debts owed to contractors across the country. The upper chamber passed the directive during Thursday's plenary session, citing mounting pressure from unpaid firms struggling to meet payroll obligations and complete infrastructure projects. Senate President Godswill Akpabio presided over the session where lawmakers voted overwhelmingly in favour of the one-week ultimatum.

Senate Takes Hard Line on Delayed Payments

The Senate's move represents a significant escalation in the chamber's oversight of federal spending. Senators expressed frustration that successive administrations have failed to address contractor debts, leaving businesses in financial distress. The resolution followed a motion moved by Senator Alhaji Ibrahim Gobira, who told colleagues that some contractors had not received payment for completed work dating back several years. Lawmakers noted that the delay has created a ripple effect across the construction sector, with smaller firms forced to lay off workers.

During the debate, multiple senators shared accounts of contractors who approached them directly seeking intervention. Senator Bamidele Opeyemi referenced a case involving a road construction firm in Ogun State that completed a 12-kilometre highway two years ago but has yet to receive full payment. The Senate resolved to summon the Minister of Finance and the Accountant General of the Federation to appear before an ad-hoc committee.

What the Deadline Requires

The one-week window means the government must submit a comprehensive list of all unpaid contractor invoices by next Thursday. The submission must include the names of defaulting agencies, the total amounts owed to each contractor, and a proposed repayment schedule. The Senate specifically demanded that ministries, departments, and agencies provide documentation within 72 hours to the Ministry of Finance.

According to the resolution, the Ministry must also identify whether outstanding payments fall under capital expenditure or recurrent expenditure categories. Senators argued that proper categorisation would help determine which funds can be released immediately versus those requiring additional appropriation. The Finance Minister will face further scrutiny if the submitted report fails to satisfy the Senate's queries.

Why Contractors Are Struggling to Get Paid

Contractors and industry groups have long complained about delays in the government payment pipeline. The problem stems from multiple factors, including budget shortfalls, bureaucratic approval processes, and disputes over project specifications. Construction companies say the delays have forced them to approach banks for expensive loans to cover operational costs.

The Nigerian Institute of Civil Engineers warned earlier this year that payment delays were pushing viable firms toward insolvency. A survey conducted by the Institute of Construction and Maintenance Professionals found that over 60 percent of member companies reported outstanding government debts exceeding 18 months. Some contractors have abandoned projects midway, citing cash flow pressures that made continuation impossible.

Impact on Infrastructure Development

The backlog of unpaid contractor debts has directly affected road construction, school building programmes, and hospital renovation projects across multiple states. In Katsina State, a contractor responsible for constructing primary health centres stopped work in October, leaving buildings unfinished. Similar scenarios have played out in Enugu, Niger, and Kwara states, where federal-funded projects remain stalled.

Government Response and Next Steps

The Ministry of Finance acknowledged receipt of the Senate resolution and promised to collaborate fully with the chamber's investigation. A statement released after Thursday's session indicated that officials were already compiling the required documentation. The Ministry's spokesperson noted that some delays resulted from verification processes designed to prevent fraudulent claims.

However, senators dismissed this explanation, arguing that verification should not take years to complete. The Senate President warned that failure to meet the deadline would trigger constitutional procedures, including the possible invocation of Section 88 of the 1999 Constitution, which empowers the legislature to summon any person or institution to explain public spending.

Economic Stakes for Nigerian Workers

Beyond the contractual disputes, the unpaid debts have real consequences for ordinary Nigerians. Construction companies employ thousands of skilled and unskilled workers, from masons and carpenters to equipment operators and logistics staff. When these firms cannot access payments owed to them, they cannot pay their workers.

Labour market analysts estimate that the construction sector employs approximately 4.5 million Nigerians, making it one of the largest sources of formal employment outside the civil service. Prolonged payment delays threaten to reverse recent gains in construction employment, with laid-off workers finding few alternative opportunities in the current economic climate.

What Happens After the Deadline

If the government fails to provide satisfactory answers by next Thursday, the Senate has indicated it will escalate the matter. Options include establishing a judicial commission of inquiry or referring the matter to the Economic and Financial Crimes Commission for investigation. Senators also discussed tabling a motion to halt new contract awards until existing debts are cleared.

Industry observers will be watching closely to see whether the Ministry of Finance delivers a credible plan within the seven-day window. The outcome could set a precedent for how the National Assembly handles similar disputes in the future. For now, contractors across Nigeria have a week to wait before learning whether the Senate's intervention will translate into actual payments.