According to reporting by Channels TV, the Minister of Works, David Umahi, has issued a stern directive to contractors holding Advance Payment Guarantees (APG) for several years without completing their assigned projects. The Minister emphasized that the era of fixing government funds in private bank accounts while projects languish is over, insisting that contractors must either return to the site immediately or forfeit further payment certificates.
This policy shift aims to curb the practice of contractors sitting on federal funds for four to five years while inflation erodes the value of the project. The administration has signaled that it will no longer tolerate the submission of large payment claims from firms that have failed to demonstrate commensurate progress on the ground.
In an update published by Gazette Nigeria, the Minister stated that this move is part of a broader commitment to accountability and transparency in infrastructure development. Meanwhile, The Nation reports that the government is determined to “retake the country” from contractors who have weaponized bureaucracy to stall national growth.
The New Telegraph confirmed this development, quoting a ministry official: “We are auditing all active contracts to ensure that every kobo released is accounted for by physical progress.”
Additionally, Blueprint Newspaper noted that industry experts have long called for this measure, with one analyst stating, “This is the only way to stop the hemorrhage of public funds into idle bank accounts.”
Echotitbits take:
This move is a direct response to the massive backlog of abandoned road projects across Nigeria. By tightening the grip on Advance Payment Guarantees, the government is forcing a “work or pay back” scenario. Watch for potential legal battles as contractors may cite fluctuating material costs as the reason for delays, but the government’s stance suggests a low tolerance for excuses in 2026.
Source: Gazettengr – https://gazettengr.com/fg-to-stop-payments-to-contractors-delaying-projects-says-works-minister/, and February 22, 2026
Photo credit: Gazettengr
