Senate Demands Change in Contractor Payment System

The Nigerian Senate has expressed concerns regarding delays in contractor payments and is urging the Federal Government to revert to the previous payment system that allowed ministries, departments, and agencies (MDAs) to pay contractors directly. This call was made during a session with the Federal Government's economic management team, which included Mr. Wale Edun, the Minister of Finance, and Atiku Bagudu, the Minister of Budget and National Planning.

Senator Sani Musa emphasized that the current centralized payment system has flaws, leading to unpaid contractors for projects already executed. The Senate's Finance Committee noted that the existing envelope budget system is ineffective and should be replaced with a priority-based model.

The committee also discussed the country's debt profile, which stands at N152 trillion, with N30 trillion attributed to the current government. The economic management team assured the committee that they would prioritize growth-enhancing projects in the upcoming budget.