Amanze Chinonye
Senate President Godswill Akpabio has assured aggrieved contractors that the National Assembly will soon approve a borrowing plan of ₦1.1 trillion to offset long-standing debts owed to them by the Federal Government.
Akpabio made the assurance on Tuesday during plenary after a large number of contractors besieged and barricaded the entrance of the National Assembly complex in Abuja to protest non-payment for executed projects.
The protesters vowed to continue their demonstration for seven days until their demands were met, disrupting access to the premises and delaying the day’s legislative session.
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Addressing the matter on the Senate floor, Akpabio confirmed that the upper chamber had already approved a domestic borrowing plan to enable the Federal Government clear verified arrears owed to contractors. He appealed for calm, urging the protesters to be patient as the government works toward disbursing the funds.
“We have just approved domestic borrowing to settle the indebtedness of contractors,” Akpabio stated. “I appeal for calm and urge them to give the Federal Government time to resolve the issue.”
The move aligns with the Federal Government’s broader fiscal strategy to use domestic borrowing to fund the 2025 budget and clear outstanding obligations across ministries and agencies.
The Senate President noted that the measure was necessary to stabilise the economy, restore confidence among private contractors, and ensure the continuity of critical infrastructure projects.
Mounting Contractor Debt
Nigeria’s contractor debt problem has persisted for years, spanning multiple administrations. Many contractors have accused government agencies of withholding payments despite project completion and certification.
This has resulted in project stalls, layoffs, and liquidity challenges across the construction and service sectors.
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Fiscal experts say the accumulation of unpaid debts reflects broader inefficiencies in project financing and budget implementation. Analysts have cautioned that while new borrowing may provide temporary relief, it risks expanding Nigeria’s domestic debt stock, which already consumes a significant share of government revenue.
Recent assessments also faulted the opacity of federal borrowing plans, noting inconsistencies between reported revenue growth and continued reliance on debt.
Akpabio’s assurance, therefore, comes at a time of rising tension between the Federal Government and private contractors who have repeatedly complained of being owed for completed projects, particularly in infrastructure, education, and public works.
Senate Responds to Trump’s Comment
Meanwhile, during the same plenary, the Senate addressed comments attributed to U.S. President Donald Trump, who reportedly alleged a “Christian genocide” in Nigeria.
Akpabio distanced himself from any statements linked to the issue, describing the report as fake news and confirming that he had petitioned the police and the Department of State Services (DSS) to investigate the blogger behind it.
“Who am I to respond to President Trump?” Akpabio asked rhetorically, noting that the matter involved sensitive diplomatic considerations.
The Senate President also urged Nigerians and the media to avoid spreading misinformation that could inflame tensions or jeopardize national unity, adding, “Nigeria’s problems must be weighed from all sides. What we need is peace.”
In a brief exchange, Deputy Senate President Barau Jibrin humorously asked if Akpabio was afraid of Trump, to which the Senate President replied that Nigeria remains a sovereign nation and must be treated with respect in global affairs.
Akpabio further directed the Cybercrime Unit to identify and prosecute those spreading false information about the Senate and its leadership.
The Senate’s assurance has temporarily eased the tension surrounding the contractors’ protest. However, attention now shifts to how soon the ₦1.1 trillion borrowing will be implemented, how payments will be verified, and whether the funds will be strictly used for debt settlement.
Analysts warn that without transparency, the government risks deepening its debt burden while failing to restore confidence among service providers.
For now, the Senate’s commitment offers a glimmer of relief but contractors and observers alike will be watching closely for action rather than promises.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
