Senate Questions FG's Centralized Payments Over Contractors

The Nigerian Senate has raised concerns regarding the Federal Government's centralized payment system, which has resulted in delays in settling obligations to contractors. During a session with the economic management team led by Minister of Finance Wale Edun on Thursday, the Senate Finance Committee described the current arrangement as ineffective.

The committee called for a return to the previous payment system that allowed ministries, departments, and agencies (MDAs) to pay contractors directly. This discussion is part of the ongoing engagement regarding the 2026 budget framework and broader fiscal reforms.

Key officials present included Minister of Budget and National Planning Atiku Bagudu and Nigeria Revenue Service Chairman Zacch Adedeji. The committee highlighted that the government's policies have significantly impacted ordinary Nigerians and emphasized the need for structural changes to ensure efficient budget payment systems.

The meeting also addressed Nigeria's rising public debt, which stands at N152 trillion, and the establishment of a multi-ministerial committee by President Bola Tinubu to tackle the issue of unpaid federal contractors.