We Will Approve ₦1.1trn For Debt Settlement, Says Akpabio As Senate Assures Protesting Contractors

Nigeria’s Senate President, Godswill Akpabio, has assured protesting federal contractors that the National Assembly will soon approve the sum of ₦1.1 trillion for the settlement of outstanding debts owed to contractors by the federal government. Akpabio gave the assurance on Monday at the National Assembly complex, Abuja, while addressing a group of contractors who staged a peaceful protest over the non-payment of their verified debts spanning several ministries, departments, and agencies (MDAs).

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The contractors, who carried placards with inscriptions such as “Pay us our money,” “We delivered our contracts,” and “Stop owing contractors,” lamented the harsh economic realities caused by unpaid debts running into several billions of naira. They said many of their members had been forced out of business, while some had died due to accumulated debts and inability to service bank loans.

Speaking during the engagement, Senate President Akpabio said the federal government recognises the plight of contractors who executed genuine projects but are yet to be paid. He noted that the 10th National Assembly, under his leadership, has been working closely with the executive arm to ensure prompt settlement of verified debts and strengthen the relationship between government and the business community.

“I want to assure you that your concerns have reached the right ears. We are fully aware of the hardship many of you are going through because of delayed payments. The Senate will approve ₦1.1 trillion for debt settlement as part of our commitment to restore confidence in government contracts,” Akpabio stated.

He explained that the approval process would form part of the 2025 fiscal adjustments and supplementary budget framework being reviewed by the Senate’s Committee on Appropriations and the Ministry of Finance. According to him, the measure is necessary to stimulate economic recovery and maintain credibility in the government’s public procurement process.

“We cannot continue to owe those who have worked for the government and expect our economy to grow. Once the verification process is completed, the National Assembly will authorise the release of ₦1.1 trillion for the settlement of these debts. This is our promise, and we intend to fulfil it,” Akpabio added.

The Senate President also appealed to the contractors to remain calm and law-abiding, emphasizing that the federal government was not ignoring their plight but taking time to ensure transparency and accountability in the debt verification process. He explained that the administration of President Bola Tinubu inherited several layers of contractual obligations from past governments, many of which lacked proper documentation.

He said the ongoing verification exercise by the Ministry of Finance and the Bureau of Public Procurement (BPP) was aimed at confirming genuine claims before funds are released to avoid paying fictitious contractors.

“The president has directed the finance minister to work with the Debt Management Office (DMO) to complete all verifications and submit a clean list of contractors for payment. This is why we are waiting for the final report before full disbursement,” he said.

The contractors, represented by their spokesperson, Engr. Ibrahim Danladi, expressed appreciation for Akpabio’s intervention and urged the Senate to expedite the process. He said many contractors had mortgaged their assets to complete government projects and were now in financial distress.

“We thank the Senate President for listening to our cry. We executed these projects in good faith. We only ask to be paid so we can survive and continue doing business with the government,” Danladi said.

Several senators, including Senate Leader Opeyemi Bamidele and Senator Sani Musa, also pledged legislative support to ensure that the debt repayment is captured in the next budget cycle. They noted that settling contractors would boost public confidence and unlock the private sector’s potential in driving infrastructure development.

Economic analysts have described the proposed ₦1.1 trillion approval as a bold step toward stimulating Nigeria’s sluggish economy. They argued that prompt payment to contractors would inject liquidity into the economy, create jobs, and revitalise moribund construction firms.

Dr. Tunde Adedeji, a financial expert, noted that unpaid contractor debts have been a major bottleneck to growth in Nigeria’s construction and service sectors. “Clearing these debts will improve credit flow and restore investor confidence,” he said.

Observers, however, urged the government to ensure that only verified and legitimate claims are paid to avoid political patronage and corruption. Transparency advocates called for public disclosure of all beneficiaries to ensure accountability in the ₦1.1 trillion debt settlement plan.

As the Senate prepares to deliberate on the supplementary budget, all eyes will be on Akpabio’s leadership to see if the promised debt approval will translate into actual payment and relief for long-suffering contractors.

If fulfilled, the ₦1.1 trillion approval would mark one of the largest single debt settlements to contractors in Nigeria’s recent history—potentially restoring trust between the private sector and the government, while also setting a new tone for fiscal responsibility and economic revitalisation in 2025.