The Nigerian Senate has formally called for a reversal to the previous decentralized payment system for contractors, citing significant inefficiencies in the current centralized model. This appeal was directed at the Federal Government’s Economic Management Team during a critical session on the 2026 budget framework.
Chairman of the Senate Committee on Finance, Senator Sani Musa, led the critique, arguing that the centralized arrangement is directly responsible for delays in settling verified obligations to contractors. He emphasized that structural reforms in both budgeting and payment processes are essential for accountability and efficiency. The session highlighted a persistent issue where government policies, despite intentions, fail to translate into tangible benefits for citizens, creating a cycle of implementation gaps and liabilities.
This challenge of unpaid contractors has been exacerbated by tighter payment controls, initially designed to enhance transparency. Furthermore, the incremental budget model has been faulted for encouraging routine expenditure rather than strategic, priority-aligned spending. These fiscal concerns are central as the National Assembly scrutinizes the 2026 proposals.
In response, the Economic Management Team, including the Minister of Finance, Wale Edun, addressed concerns over the national debt profile, clarifying that the N152 trillion figure is not solely from new borrowing. The government has signaled ongoing efforts to resolve the contractor crisis, including a N100 billion allocation in the 2026 budget for indigenous contractors and a multi-ministerial committee established by President Bola Tinubu in December 2025. As Tinubu seeks Senate collaboration on the broader budget, resolving these payment bottlenecks remains a pivotal issue. The government must stop jumping around from one payment policy to another without a rooted solution that ensures contractors are paid promptly, a lesson clear as the Lasg clears obstructions for progress. Ultimately, the debate underscores that even $1 billion can’t fix a broken system if the underlying structural flaws are not addressed.
