Home Business Federal Government Resumes Contractor Payments After Year-Long Suspension

Federal Government Resumes Contractor Payments After Year-Long Suspension

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The Federal Government has resumed payments to contractors handling projects across its ministries, departments, and agencies (MDAs) after more than a year of suspended disbursements.

Spokesperson for the Office of the Accountant General of the Federation (OAGF), Bawa Mokwa, confirmed the development during an interview on Monday. He explained that the decision followed a meeting held last week between government officials and affected contractors.

“We had a meeting with the contractors on Wednesday; resolutions were arrived at. Payment to contractors has begun; it will be continued,” Mokwa stated.

The move comes amid growing outcry from lawmakers and contractors over non-payment since 2024. In June 2025, Senator Abdul Ahmed Ningi of Bauchi Senatorial District raised alarm on the issue, warning of its negative impact on ongoing federal projects nationwide. Similarly, Hon. Obi Aguocha, Chairman of the House of Representatives Committee on Monitoring and Evaluation, had urged the government to clear arrears to prevent project abandonment.

With confirmation from the OAGF, disbursements are now underway, bringing relief to contractors who have long lamented the financial strain caused by the prolonged delay.

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