FG Pledges to Offset N100Bn Debt to Road Contractors

Hassan Lawal, minister of Works, Housing and Urban development last week, said the federal government is gearing up to pay the over N100 billion debts it owed local contractors handling its road projects.
This statement was also backed by senator Julius Ucha, chairman, senate committee on works, who said that the National Assembly would ensure that the federal government cleared all its debt to contractors handling road projects quickly to address the problems of road in the country.
Lawal appealed to contractors to return to sites and continue their works, adding that all backlog of unpaid monies would be cleared soon.
He pleaded for the contractors’ cooperation, while saying that they cannot continue to abandon projects on account of nonpayment of monies due to the critical nature of Nigerian roads.
“Your work is seasonal due to the rains, so what I want from you people is a little understanding and patience because all payment will be made as at when due. So please continue to work and finish the projects,” he pleaded.
“Even if you do not get all the money for all the projects, you can handle the ones you can, and when it is certified that you have completed the jobs, we will ensure that payment is quickly effected. But if you abandon the project, you are taking Nigeria backward, and that you know is not good for our development.”
Michael Hachenberg, managing director of Setraco Nigeria limited, who spoke on behalf of contractors present at the meeting, decried the situation saying that government’s indebtedness to contractors has made it very impossible for them to continue working.
He informed that contractors are facing hard times and often times had to take the painful decision of abandoning projects as a result of lack of funds.
“What we saw last year was not favourable. Contractors were suffering because government owed them over N100 billion. We cannot go to the bank to look for money because of high interest rates of 18 percent, so contractors do not want to abandon project but sometimes the financial crisis we face cause us to do so.”