Senate urgesreturn to direct contractor payments to end delays

The Senate Committee on Finance has called for Nigeria to revert to the old system where Ministries, Departments and Agencies (MDAs) pay contractors directly, citing inefficiencies in the current centralised payment arrangement. The committee argues this shift causes significant delays in settling verified obligations, as seen during an interactive session with the Federal Government's Economic Management Team led by Finance Minister Wale Edun. Lawmakers also criticized the envelope budgeting model and incremental allocation system, claiming they promote routine expenditure expansion rather than strategic prioritisation. Finance Minister Edun clarified Nigeria's N152 trillion public debt includes N30 trillion from inherited Ways and Means and N9 trillion from exchange rate adjustments, with only N20 trillion in new borrowing since 2023. The 2026 budget earmarks N100 billion to settle outstanding contractor obligations nationwide, following President Tinubu's December 2025 committee to address unpaid federal contractors.

SOURCE: https://nairametrics.com/2026/02/27/senate-queries-fgs-centralised-payments-over-unpaid-contractors/