The Senate yesterday intensified efforts to address the lingering issue of unpaid debts owed to contractors by the federal government, setting up a six-member committee to engage the Ministry of Finance and obtain details of plans to settle outstanding obligations.
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The upper chamber also gave the committee a one-week deadline to submit its findings, including the federal government’s efforts toward reimbursing contractors for capital projects executed across the country.
Senate President Godswill Akpabio announced the constitution of the committee during plenary after lawmakers overwhelmingly endorsed the proposal through a voice vote.
The committee is expected to serve as a liaison between the National Assembly and the Federal Ministry of Finance with a view to facilitating the payment of contractors who have completed government projects but are yet to receive their entitlements.
Akpabio named the Chairman of the Senate Committee on Finance, Senator Sani Musa (APC, Niger East), as chairman of the panel.
Other members are Senators Adetokunbo Abiru (APC, Lagos East), Kawu Sumaila (APC, Kano South), Abubakar Sani Bello (APC, Niger North), Isah Jibrin (APC, Niger East), and Abdullahi Yahaya (APC, Kebbi Central).
The Senate President directed the committee to immediately commence engagements with officials of the Ministry of Finance and other relevant government agencies responsible for the settlement of outstanding contractual obligations.
He said the panel’s report should clearly indicate the status of the debts, measures already taken by the government to address the issue, and the prospects for prompt payment to affected contractors.
The move underscores growing concern over the impact of delayed payments on contractors and project delivery across the country.
Many contractors handling federal capital projects have repeatedly raised concerns over outstanding debts, arguing that prolonged delays in payment have hampered operations, increased project costs and affected the timely completion of critical infrastructure projects.
By mandating the committee to submit its report within one week, the Senate signalled its determination to obtain clarity on the issue and ensure that appropriate steps are taken to resolve the backlog of payments.
The development is expected to provide lawmakers with a clearer picture of the financial obligations owed by the federal government to contractors and the measures required to address them.
Observers believe that prompt settlement of verified debts could provide relief to contractors, stimulate economic activities and accelerate the completion of infrastructure projects in various parts of the country.
The committee’s findings are expected to guide further legislative action on the matter as the Senate continues its oversight of government finances and implementation of capital projects.
With the one-week deadline now in place, attention will be focused on the outcome of the committee’s engagement with the Ministry of Finance and the federal government’s strategy for clearing the outstanding debts owed to contractors nationwide.
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