The Federal Government has vowed to stop approving further payments to contractors who have been holding onto advance funds for years without commencing or progressing on awarded projects.
Minister of Works, Senator David Umahi, issued the stern warning on Saturday, February 22, 2026, directing such contractors to immediately return to their sites or risk losing approval for additional funds.
Umahi specifically targeted those in possession of Advance Payment Guarantees (APGs) who have retained federal funds for four to five years without utilizing them for the intended projects, while still submitting payment certificates to access more money.
“I will not approve payment certificates for any contractor who has held government funds for four or five years and is seeking further payments without delivering on the project,” Umahi declared.
He described the practice as unacceptable, noting that it violates procurement standards and amounts to hoarding public funds sometimes even investing them in banks while demanding fresh disbursements.
The minister stressed that advance payments must be used strictly for project execution, and the ministry would no longer process or honour certificates from contractors still sitting on unspent government money.
This move forms part of the administration's push for greater accountability, transparency, and discipline in the management of public infrastructure funds, ensuring every naira spent delivers tangible value to Nigerians.
No immediate reactions from contractors or industry groups have been reported following the announcement, though it comes amid ongoing efforts to address delays, legacy debts, and payment issues in the sector.
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