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Nigeria’s House of Representatives is set to beam its searchlight into the allegations bothering on non-payment of N9.1 trillion appropriated for local contractors over the past few years.
According to the report obtained by BusinessDay, paltry sum of N20 billion was approved in the 2017 Appropriation Act to offset the debts incurred by Federal Government.
The resolution was passed by the House sequel to the adoption of a motion sponsored by Magaji Da’u Aliyu, who expressed concern over the plight of thousands of local contractors amidst lingering socio-economic crisis.
In his lead debate, Aliyu who called for the intervention of the House, observed that the N9.1 trillion was approved to offset Federal Government’s indebtedness spanning over three years.
“Federal Government has been indebted to the tune of N9.1 trillion to Local Contractors in the last 3 years as reflected in the reports of the Central Bank of Nigeria and the Debt Management Office.
“The House notes that the inability of the Federal Government to finance the 2017 budget deficit and meet its other obligations made the Ministry of Finance to source for funds from commercial Banks and the Capital Market through ‘Sukuk’ e.t.c while the said fund has not been used to pay indigenous contractors.
“The House further notes that with the country exiting from economic recession which had adversely affected the standard of living of Nigerians, the Federal Government can reflate the economy by paying Local Contractors, thereby creating employment and boosting the purchasing power of Nigerians,” the lawmaker said.
He maintained that the sum of N20 billion was earmarked in the 2017 budget to settle debts owed to local contractors and other liabilities.
“Some of those contractors may have collected loans from various commercial Banks or other Financial Houses which would be yielding interest on daily basis or may have lost the collateral used to obtain such loans.
“The House is aware that most of those contractors have dependents, responsibilities and various financial commitments, especially at these trying times when the economy is experiencing difficulties and unemployment is rife,” Ahmed observed.
To this end, the lawmakers urged the Federal Ministry of Finance to look into the indebtedness and source for fund to offset the debt and or in the alternative come up with payment plan;
The House also mandated the Committee on Aids, Loans and Debt Management to determine the efforts of the Debt Management Office in relation to Federal Government inability to pay Local Contractors.
While ruling, Speaker Yakubbu Dogara tasked the Committee to investigate the actual indebtedness of Ministries, Departments and Agencies of Federal Government of Nigeria to Local Contractors in the last three years.
KEHINDE AKINTOLA, Abuja
