Indigenous Contractors Urge Wike to Approve Payment for Certified FCT Contracts

Outstanding Contract Payments Spark Fresh Appeal to FCT Administration

A group of indigenous contractors working with the Federal Capital Territory Administration (FCTA) has appealed to the Minister of the Federal Capital Territory, Nyesom Wike, to approve payment for completed and certified contracts executed under the National Shopping procurement framework. The contractors argue that the projects were awarded through established procurement procedures, completed according to approved specifications and subsequently certified by relevant departments for payment. They contend that delays in settling the outstanding obligations have created financial hardship for contractors and disrupted the delivery of some essential public services across the capital.

/ You Might Also Like /

The appeal highlights ongoing concerns about contract administration, public procurement processes and the timely settlement of government obligations within the FCT.

Contractors Defend Procurement Process

The Association of Indigenous Contractors of the FCTA stated that the contracts in question were awarded by Mandate Secretaries and heads of agencies operating within their approved administrative and financial limits. According to the association, all required procurement procedures were followed, including the execution of legal agreements through the appropriate departments of the FCTA.

The contractors maintain that the projects were delivered according to approved bills of quantities and subsequently certified by the relevant user departments before being forwarded for payment processing.

They argue that the contracts represent valid obligations that should be honoured by the administration.

Dispute Linked to Procurement Policy Changes

The issue is connected to a June 13, 2024 circular issued by the FCT Administration directing departments, secretariats and agencies to discontinue the use of the National Shopping procurement method. According to the contractors, the directive was introduced to strengthen accountability and prevent abuses within the procurement system. However, they emphasise that the circular did not declare previously awarded contracts illegal.

The association argues that contracts awarded and completed before the policy change should still qualify for payment where all contractual requirements have been fulfilled.

Contractors insist that no new projects were awarded under the framework after the directive took effect.

Financial Pressure on Local Contractors

The contractors claim that delayed payments have created severe financial challenges for many indigenous firms involved in project execution. According to the association, several contractors have experienced business disruptions, financial losses and broader socio-economic difficulties as a result of unpaid certified contracts.

Industry analysts note that delayed government payments can place significant pressure on contractors, particularly small and medium-sized firms that rely on timely cash flow to meet operational obligations, service debts and maintain employment levels.

The situation has renewed discussions about the importance of efficient contract payment systems within public sector procurement frameworks.

Concerns Over Service Delivery

Beyond the impact on contractors, the association argued that delayed payments may be affecting the continuity of certain public services within the Federal Capital Territory.

According to the contractors, activities such as drainage desilting, sewage management and waste evacuation have experienced disruptions because of outstanding liabilities associated with completed projects.

Infrastructure and environmental management services often depend on contractors for implementation and maintenance, making payment efficiency an important component of service delivery.

Stakeholders note that timely settlement of verified obligations can help ensure continuity in essential urban management activities.

Differing Views on Contract Authority

The dispute also reflects differing interpretations regarding the authority under which the contracts were awarded.

During a recent media engagement, Wike reportedly stated that directors within the FCTA were responsible for awarding some of the contracts under review. However, the contractors disagreed, arguing that the projects were approved by Mandate Secretaries and the Coordinator acting within delegated powers.

The association has called for a review of official records and investigation reports to establish the approval process and determine the relevant authorities involved in contract awards.

This aspect of the dispute may play a key role in resolving the payment issue.

Implications for Infrastructure Development

The development highlights broader issues relating to public procurement, contractor confidence and infrastructure delivery within the Federal Capital Territory.

Experts note that predictable payment systems are important for attracting competent contractors, encouraging investment in project delivery and maintaining confidence in government procurement processes.

Where payment disputes persist, they can affect project execution timelines, increase financing costs and reduce participation in future infrastructure programmes.

As Abuja continues to expand, efficient contract administration remains an important factor in sustaining urban development and public service delivery.

Conclusion

The appeal by indigenous contractors for payment of completed and certified contracts underscores the importance of transparency, accountability and efficiency in public procurement systems. The contractors maintain that the projects were legally awarded, executed and certified before the discontinuation of the National Shopping procurement framework and therefore remain valid obligations of the FCTA.

As discussions continue, stakeholders will be watching closely to see how the FCT Administration addresses the outstanding liabilities. The outcome could have implications not only for affected contractors but also for future procurement practices, infrastructure development and service delivery across the Federal Capital Territory.

READ MORE