Nigerian govt to stop payments to contractors hoarding advance funds – Umahi
Naija News • Feb 22
**FG Issues Warning to Contractors Hoarding Public Funds**
The Federal Government of Nigeria has issued a stern warning to contractors who have been hoarding Advance Payment Guarantees, APGs, for extended periods without commencing work on their projects. Minister of Works, David Umahi, has directed these contractors to return to their project sites immediately or risk losing further financial approvals from the government.
This move is a response to the widespread practice of retaining government funds for four to five years without utilising them for the intended projects. Contractors have been submitting payment certificates to access additional funds, despite not having started work on their projects. Umahi describes this situation as unacceptable and a deviation from standard procurement and financial management practices.
Contractors are being urged to promptly resume work and ensure that the advance payments are used strictly for the projects for which they were released. The Ministry of Works has made it clear that it will no longer process or honour payment certificates from contractors who are still in possession of unspent government funds. This means that contractors who have been hoarding public funds for years will no longer be able to access additional funds until they complete their projects.
Umahi's warning is also directed at contractors who are investing public funds in banks while requesting fresh disbursements from the government. He stresses that such practices will no longer be tolerated under the current administration, which is committed to enforcing accountability, transparency, and discipline in the execution of public infrastructure projects.
The Federal Government's resolve to enforce responsible stewardship of public resources is a welcome development, particularly in a country where corruption and mismanagement of public funds are major concerns. By holding contractors accountable for their actions, the government is taking a crucial step towards ensuring that every naira spent delivers value and contributes to the development of the country.