By Bassey Udo
The prolonged impasse between the Federal Government and indigenous service providers over outstanding payments for completed contracts may soon become a thing of the past if the promise by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, is to be believed.
Oyedele, who took over from Wale Edun last week, moved swiftly to address one of the recurring issues that gave the government an ugly image in the past three years of the present administration.
Over the last two years members of the All-Indigenous Contractors Association of Nigeria have always staged protests outside the Federal Ministry of Finance headquarters in Abuja to demand the settlement of outstanding indebtedness by the government valued at over N4trillion.
Although the government was able to pay only about N152 billion after a verification of the claims, its promises for the settlement of the balance always fail to materialise.
But, Oyedele who met with representatives of the contractors in Abuja on Monday reaffirmed the Federal Government’s commitment to resolving outstanding obligations to local contractors in a fair, transparent, and structured manner.
The Minister said the meeting was aimed at addressing the prolonged impasse between the Federal Government and indigenous service providers as part of broader efforts by the government to sustain economic reforms and strengthen public confidence.
The meeting focused on outstanding payments related to capital expenditure, with discussions on the need for clarity, accountability, and a credible framework for resolving verified claims.
The Minister emphasized that the process would balance fiscal realities, in terms of available funds, with the government’s responsibility to honour legitimate obligations.
“Resolving these obligations is important not just for contractors, but for confidence in government, job creation, business continuity, and overall economic stability,” the Minister stated.
He acknowledged the concerns raised by the contractors, particularly regarding delayed payments, contract variations, and the impact of ongoing fiscal reforms on project execution.
He assured stakeholders that the government was working closely with relevant institutions to reconcile outstanding claims and to establish a clear and sustainable payment structure.
While the administration said it remained committed to bold and necessary reforms to stabilize the economy, Mr. Oyedele reiterated that such measures would continue to be implemented with due consideration for stakeholders to minimize disruptions.
“The government recognizes the critical role local contractors play in infrastructure development and economic growth. We are determined to resolve all outstanding issues through structured engagement within the framework of fiscal responsibility,” he added.
The meeting had in attendance the Permanent Secretary, Federal Ministry of Finance, Mr. Raymond Omachi; Permanent Secretary, Special Duties, Mr. Mohammed Sanusi Danjuma; the Accountant-General of the Federation, Mr. Shamsudeen Ogunjimi; the Director, Cash Management, Federal Ministry of Finance; and the Director, Funds, and other line Directors both from the Finance Ministry and the Office of the Accountant-General of the Federation.
Representatives of the contractors commended the Minister for initiating the dialogue and expressed optimism that the renewed engagement would lead to practical and lasting solutions.
They also pledged their continued cooperation with the government to ensure the timely delivery of critical infrastructure projects across the country.