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Former presidential candidate of the Labour Party, Mr. Peter Obi, has criticized the Federal Government for not paying local contractors, despite President Bola Tinubu’s public assertion that Nigeria has “met and surpassed” its revenue target for the year.
In a statement titled ‘Let Our SMEs Breathe’, posted on X on Thursday, the former governor of Anambra State expressed concern over reports and images of contractors protesting in Abuja and various other locations across the country due to unpaid bills for completed projects.
Obi highlighted that most of the affected contractors are small and medium-sized enterprises that play vital roles in regional economies and depend on timely government payments to remain operational.
He condemned the government for boasting about increased revenue while allegedly neglecting fundamental financial obligations, labeling this situation as a “contradiction” that reveals deeper issues in public finance management and transparency.
Obi stated: “In recent days, we have witnessed troubling images and reports of local contractors protesting throughout Abuja and other regions, demanding payment for work they have already completed. Many of these contractors are small and medium-sized businesses that are crucial to the economy in various areas, consisting of ordinary Nigerians who have provided essential public services with the expectation that the government would fulfill its commitments.
“What is even more concerning is that this situation arises after President Tinubu publicly declared in August that Nigeria had “met and surpassed its revenue target for the year.” With such an impressive achievement, one would expect increased investment in the economy—particularly in education, healthcare, and initiatives aimed at reducing poverty. Yet, the government continues to neglect payments to contractors.
“A responsible government cannot claim record revenue while simultaneously leaving thousands of contractors unpaid. This contradiction underscores deeper issues related to transparency in our public finance management and governance.
“When a government fails to pay its contractors, the repercussions extend throughout the entire economy. Medium and small businesses close down, workers lose their jobs, families face financial difficulties, and the nation loses its productive capacity.
“We cannot cultivate a robust economy when public funds are mismanaged, obligations are disregarded, and local businesses are treated as disposable. If our revenue has indeed increased, it should be evident in timely payments of obligations, the growth of micro, small, and medium enterprises (MSMEs), and a reduction in borrowing.
“Meeting our obligations to contractors is not optional; it is a measure of honesty, competence, and genuine leadership. A government that cannot fulfill its commitments cannot be trusted to build a nation. As leaders, we must honor our obligations, manage resources with discipline, and create an economy that benefits the people. This is how a nation rises.”
Frequently Asked Questions
What is Peter Obi's main criticism of the Federal Government?
Peter Obi criticizes the Federal Government for failing to pay local contractors while claiming that Nigeria has exceeded its revenue targets for the year.
Why are contractors protesting?
Contractors are protesting due to unpaid bills for completed projects, which has significantly impacted small and medium-sized enterprises that rely on timely payments.
What does Obi suggest is the consequence of not paying contractors?
Obi suggests that failing to pay contractors leads to business closures, job losses, family hardships, and a decrease in the nation's productive capacity.
Eze Chidiebere Paul
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