Checkout Magazine recently learnt that President Bola Ahmed Tinubu has directed the payment of N1.5 trillion owed to local contractors.
He raised a multi-ministerial panel to provide a permanent funding solution during yesterday’s Federal Executive Council (FEC) meeting.
Presidential spokesman Bayo Onanuga said the President was ‘visibly upset’ about the situation.
Onanuga said: “He made it very clear he was not happy and wanted a one-stop solution.
“The President expressed grave displeasure about the fact that contractors are being owed.”
According to him, the Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, briefed the Council on the magnitude of outstanding obligations, prompting the President’s directive to constitute a multi-ministerial team to clear the backlog and come up with a funding plan.
Members of the committee are: Minister of Finance and Coordinating Minister of the Economy Wale Edun, Budget and Economic Planning Minister Atiku Bagudu, Works Minister Dave Umahi, Education Minister Olatunji Alausa, Housing Minister Ahmed Dangiwa and Marine and Blue Economy Minister Gboyega Oyetola.
Others are the Director-General of the Budget Office of the Federation Tanimu Yakubu, and the Federal Inland Revenue Service (FIRS) Executive Chairman, Dr. Zacch Adedeji.
Onanuga added: “All of them are expected to sit down, develop a plan as a committee, and then go to the President to tell him the solution they have found in allocating funds to pay contractors.”
He explained that the President was determined to “find the money and fix the problem,” even hinting that the government could borrow to settle verified obligations if necessary.
The development followed weeks of pressure from contractors, who have repeatedly protested delays in payment of certified arrears.
