Contractors, MDA Officials Pile Pressure on New Finance Minister Oyedele Over Unpaid Billions

Taiwo Oyedele has barely settled into his new role as Nigeria’s Finance Minister, and the pressure is already building. Contractors owed billions of naira by the federal government and officials from several Ministries, Departments and Agencies are demanding urgent action on a payment backlog that has pushed many businesses to the edge.

The problem is not new, but it has reached a breaking point. Many contractors financed government projects with bank loans, trusting that payments would follow within reasonable time. Instead, months — and in some cases years — of delays have left them struggling to service debt. One contractor involved in federal infrastructure projects put it plainly: “We have delivered on contracts, yet payments are stalled. Many firms are on the brink, and patience is running out.”

Banks Exposed, Services Stalling

The fallout goes beyond the contractors themselves. Banks that extended credit to these businesses are reporting a rise in non-performing loans directly linked to the government’s payment delays. If the backlog is not cleared, the risk to the broader financial sector grows — and that is a problem felt far beyond government procurement circles.

MDA officials have also flagged persistent funding gaps hitting service delivery in power, defence, and healthcare. Without funds reaching contractors and vendors, projects stall, equipment goes unmaintained, and the people who depend on those services pay the price.

Some contractors have gone further, warning that mass protests could follow if nothing changes. It is a political headache that Oyedele did not create but now owns entirely.

New Minister, Old Debt

Oyedele was appointed following President Tinubu’s recent cabinet reshuffle. He built his reputation as a tax and fiscal policy expert, having chaired the Presidential Committee on Fiscal Policy and Tax Reforms. But clearing inherited arrears is a different challenge — one that requires political will, fresh budget releases, and a credible payment timeline.

Stakeholders say they are not asking for miracles. They want acknowledgment that the backlog exists, a structured payment plan, and transparency on when relief will come. Whether Oyedele moves fast enough to prevent the situation from escalating will be an early test of his tenure.

Sources: Vanguard, The Nation