The House of Representatives on Tuesday charged the Federal Ministry of Finance to defray debts owed local contractors.
The house also urged the ministry to look into the indebtedness and source for fund to offset the debt or come up with payment plan.
The house resolution followed a motion on the “Need to Investigate the Failure to Pay Monies Allocated for Local Contractors in the 2017 Budget” moved by Rep. Magaji Aliyu (Jigawa-APC).
Moving the motion, Aliyu quoted the Central Bank of Nigeria (CBN) and the Debt Management Office (DMO) reports as saying that the Federal Government’s indebtedness to Local contractors in the past 3 years was about N9.1 trillion.
He disclosed 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.
“The funds were sourced from commercial banks and the Capital Market through “sukuk” among others but have not been used to pay indigenous contractors.
“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,” he said.
The lawmaker further disclosed that N20 billion was earmarked in the 2017 budget to settle debts owed to local contractors and other liabilities.
“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.
“These contractors have dependents, responsibilities and various financial commitments, especially at these trying times when the economy is experiencing difficulties and unemployment is rife,’’ Aliyu said.
The motion was unanimously adopted by members when it was put to a voice vote by the Speaker, Mr Yakubu Dogara.
The House, therefore, mandated its Committee on Aids, Loans and Debt Management to determine efforts of the DMO in relation to Federal Government inability to pay local contractors.
The joint committee is expected to investigate the actual indebtedness of Ministries, Departments and Agencies of Federal Government to local contractors in the last three years. (NAN)
