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The Centre for Economic Reforms in Africa (CERA) has expressed deep concern over the Federal Government's failure to pay local contractors who completed projects under the 2024 budget.
In a statement signed by its Director, Dr Martins Tayo, CERA highlighted the severe ripple effects on businesses, families, and the Nigerian economy.
“The lack of payment has reduced the amount of money in circulation, leading to a decline in economic activity,” Tayo remarked.
The centre revealed that many contractors face financial turmoil, including loan defaults and layoffs.
“This failure has eroded trust in the government’s ability to manage public finances,” Tayo added.
The non-payment has restricted contractors from investing in new projects, further stalling job creation and economic expansion.
The implications extend beyond business, impacting families across the nation.
“Many families are struggling to access basic necessities like food, healthcare, and education,” Tayo said, noting that job losses resulting from the crisis have strained household incomes.
CERA also warned of rising social unrest if the issue remains unresolved, with potential protests looming as businesses and workers bear the brunt of the government’s financial lapses.
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To address the crisis, CERA called for immediate payment to contractors and a transparent repayment plan.
“Boosting liquidity and rebuilding trust are essential steps,” Tayo stressed.
The centre urged the Federal Government to prioritise its obligations to prevent further economic decline and restore confidence among local and foreign investors.