Umahi warns contractors to resume work or lose funding
Minister of Works David Umahi has issued a firm warning to contractors holding Advance Payment Guarantees (APGs) for years without commencing work, directing them to return to project sites immediately or forfeit further financial approvals. Umahi faulted the practice of retaining Federal Government funds for four to five years without applying them to awarded contracts, while still submitting payment certificates to access additional funds. He described the situation as unacceptable and contrary to standard procurement and financial management practices. Contractors must promptly resume work and ensure that advance payments are strictly utilised for the projects for which they were released. The ministry will no longer process or honour payment certificates from contractors who are still in possession of unspent government funds. Umahi reaffirmed the Federal Government’s resolve to enforce accountability, transparency and discipline in the execution of public infrastructure projects, noting that every naira spent must deliver value and reflect responsible stewardship of public resources.