FG Prioritizes Payments to Small Contractors in Debt Restructuring

The Federal Government of Nigeria has restructured its debt payment strategy to prioritize small and medium-sized contractors, following a directive from President Bola Tinubu. On Friday in Abuja, Finance Minister and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, announced that the first phase targets contractors owed N50 million or less, affecting over 2,000 contractors.

A second phase will expand this threshold to N100 million, covering approximately 5,000 contractors. Oyedele stated that larger claims, such as those exceeding N100 million, would be handled differently, potentially involving negotiations for payment arrangements.

He emphasized the need for immediate cash for smaller contractors, contrasting their needs with those of larger firms. A medium-term goal is to make verified government debt bankable.

Oyedele also warned against illegal payments to secure debts and encouraged reporting such practices. The government aims to prevent future unpaid obligations by ensuring clarity on funding sources for capital projects.