Caught Between Contracts and Cash: FCT Indigenous Contractors Seek Wike’s Intervention Over Unpaid Projects
By Matthew Eloyi
ABUJA — A growing dispute over unpaid contracts has brought indigenous contractors in the Federal Capital Territory (FCT) into direct appeal to the FCT Minister, Mr Nyesom Wike, as they seek the release of funds for projects completed under the now-discontinued National Shopping procurement framework.
The contractors, operating under the umbrella of the Association of Indigenous Contractors of the Federal Capital Territory Administration (FCTA), say they have fulfilled their obligations on numerous projects that were duly awarded, executed and certified, yet payment remains outstanding.
In a statement issued in Abuja on Tuesday and signed by the association’s Chairman, Mr Ehuwa Adebola, the group urged the minister to authorise payment for all certified contracts awarded before the procurement method was discontinued.
The appeal followed comments reportedly made by Wike during his monthly media chat on June 1 regarding contracts awarded to indigenous contractors in the FCT. While the minister was quoted as attributing responsibility for the disputed contracts to directors within the FCTA, the contractors insist the projects were approved through established administrative channels and in accordance with procurement regulations in force at the time.
According to Adebola, the contracts were awarded by Mandate Secretaries and heads of agencies acting within their delegated authority and approved spending limits. He explained that legal agreements were executed between the contractors and the FCTA through the appropriate legal departments before work commenced.
“The processes required for the award and execution of the contracts under review were duly followed,” Adebola stated. “The projects were completed, certified and processed for payment. Therefore, we believe the FCTA has a legal obligation to settle the outstanding liabilities.”
The association maintained that all projects were executed according to approved specifications and subsequently certified by relevant user departments before payment requests were forwarded through the proper channels.
At the centre of the controversy is a June 13, 2024 circular issued by the minister directing all FCTA departments, secretariats and agencies to discontinue the use of the National Shopping procurement method. The directive, according to the contractors, was aimed at improving accountability and preventing abuse of the process, but it did not invalidate contracts already awarded under the framework.
Adebola argued that following the circular, no new contracts were initiated through the procurement method. Instead, efforts shifted to completing ongoing projects and processing payments for works already delivered.
Despite this, he alleged that approvals for payment of several completed contracts have yet to be granted, leaving contractors stranded and raising concerns about the implications for public service delivery.
The association warned that the continued suspension of payments has affected routine city management activities, including drainage desilting, sewage management and waste evacuation in some parts of the capital.
Beyond the impact on public infrastructure, the contractors say the financial consequences have been severe. Many businesses, they claim, are struggling under the weight of unpaid invoices, leading to losses, mounting debts and wider socio-economic challenges for workers and their families.
In an effort to find a resolution, the contractors said they have engaged repeatedly with Mandate Secretaries and heads of agencies involved in the contract awards. The discussions, according to the association, were intended to facilitate dialogue with the FCT Administration on the settlement of outstanding liabilities.
While the dispute continues, the contractors are calling for what they describe as a fair and lawful resolution.
“We remain committed partners in the development of the FCT and urge the minister to act in the interest of justice and equity,” Adebola said.
The association also challenged claims that directors were solely responsible for the disputed contracts, insisting that official records and police investigation files would show that the contracts were approved by Mandate Secretaries and the Coordinator acting within their delegated powers.
As both sides hold firm to their positions, the issue has become more than a disagreement over procurement procedures. For many indigenous contractors, it is a test of government’s commitment to honouring obligations on projects already delivered, while for the FCT Administration, it highlights the continuing challenge of balancing accountability reforms with inherited contractual liabilities.