BY JOY ODOR
ABUJA: Nigeria’s House of Representatives has launched a probe into a ₦100 billion contractor debt backlog, summoning the Accountant-General of the Federation (AGF), Mr. Shamsudeen Ogunjimi, to explain widespread payment delays and alleged procurement violations across ministries, departments, and agencies (MDAs).
At a heated session in Abuja, the House Committee on Public Procurement, chaired by Hon. Unyime Idem (APC–Akwa Ibom), expressed outrage over what it described as a “crisis of confidence” in the nation’s financial management, following a flood of petitions from unpaid contractors dating back to 2022.
“Every day, we receive fresh petitions from contractors who have completed legitimate jobs but remain unpaid for years,” Idem told the AGF.
“If not for this committee’s intervention, your office would have been under siege by angry contractors.”
The Committee issued a seven-day ultimatum to the Accountant-General to provide full documentation explaining all delayed payments and alleged breaches in the 2023–2025 budget cycle.
Ogunjimi, who took office in March 2025, admitted that several contracts were awarded without budgetary backing in violation of the Public Procurement Act.
He said his office was working to reconcile accounts and clear verified payment claims.
“Some MDAs awarded contracts without funds to support them, creating fiscal gaps,” Ogunjimi said.
“We are addressing these irregularities and will submit a detailed audit report within one week.”
He added that some directors implicated in the questionable transactions have been redeployed as part of the clean-up effort.
Lawmakers warned that the huge backlog of unpaid debts is crippling small businesses and stifling liquidity in critical sectors such as infrastructure, power, health, and education.
Economic analysts echoed the concern, warning that prolonged government indebtedness to contractors was threatening the stability of the financial system.
“When government fails to pay contractors, the banks suffer too,” a senior infrastructure finance expert said. “It leads to non-performing loans and starves the economy of growth capital. It’s a silent fiscal time bomb.”
Hon. Idem said the House leadership has directed his committee to ensure strict accountability and transparency in government procurement, particularly as the 2026 budget preparations begin.
“We will not tolerate further breaches,” he warned. “Every agency must adhere to due process and ensure payments are backed by available funds.”
The Committee vowed to summon heads of defaulting MDAs for questioning during subsequent hearings.
