President Bola Ahmed Tinubu has directed the Federal Government to immediately begin the settlement of approximately ₦1.5 trillion owed to local contractors. The directive followed a detailed briefing on outstanding obligations across various ministries and agencies.

According to the Presidency, the President has constituted a multi-ministerial committee tasked with verifying all claims, reconciling records, and developing a sustainable, long-term funding mechanism to prevent future backlogs. The committee is expected to fast-track the clearance of verified debts and ensure transparency in the reconciliation process.

The move comes after months of pressure from contractors who say they completed government projects dating back to 2024 without receiving payment. Many had raised alarms over the impact of the prolonged debt on their businesses and the construction sector at large.

President Tinubu was quoted as saying that his administration remains committed to strengthening the economy by ensuring that contractors are paid promptly. He also signaled readiness to consider borrowing options if necessary to complete the payment cycle without disruption to ongoing national projects.

Contractors nationwide have welcomed the directive, describing it as a major step toward restoring confidence in government procurement and execution processes.