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SENATE INITIATES PROBE INTO NIGERIA’S RAILWAY CONTRACTS AMID SERVICE CONCERNS

.The Nigerian Senate has set up an ad-hoc committee to investigate railway contracts and the execution of rail projects nationwide, following mounting concerns over declining services on major routes. The decision came after Senator Abdul Ningi (PDP, Bauchi Central) raised a point of order under Order 42, highlighting what he called the “tragic situation” on the Kano–Kaduna rail line. He noted that train frequency had dropped to one trip per day, while cargo transport time had increased from about 90 minutes to nearly three hours. Senator Adamu Aliero (APC, Kebbi Central) attributed part of the decline to damage from bandit attacks along the railway corridor. Responding to the issue, Senate President Godswill Akpabio said funding was not the primary problem. Instead, he pointed to the age and quality of the rail infrastructure, describing some sections as substandard. Akpabio stressed that a legislative investigation was necessary to review how railway contracts are awarded, executed, and maintained. The probe will cover project design, funding allocations, execution standards, and maintenance practices, with the goal of improving efficiency and reliability across Nigeria’s rail network.

FEDERAL GOVERNMENT BEGINS PAYMENT OF OUTSTANDING DEBTS TO CONTRACTORS

The Federal Government has initiated steps to settle outstanding debts owed to verified contractors who have completed projects for its Ministries, Departments, and Agencies (MDAs). According to the Office of the Accountant General of the Federation (OAGF), the government maintains accurate records of contracts executed by its MDAs and remains committed to ensuring that all completed projects meeting required standards are paid for. The OAGF confirmed that the government has commenced the clearance of five months’ arrears related to the N35,000 wage award for federal workers. Disbursements began in May and will continue on a structured schedule, with the next payment due after June 2025 salaries are processed. Estimates suggest the government currently owes contractors between ₦200 billion and ₦400 billion, driven by delayed budget releases, liquidity constraints, and procurement inefficiencies. The OAGF emphasized that only contractors who adhered to due process and met contract specifications would be eligible for payments. “The government maintains accurate records of contracts executed by its Ministries, Departments, and Agencies (MDAs) and remains committed to ensuring that all completed projects meeting required standards are paid for,” the OAGF said in a statement. The government’s decision to settle outstanding debts comes amid growing concerns about the economic impact of delayed payments, including stalled infrastructure projects, job losses, and financial hardship for smaller contractors. Industry experts have repeatedly flagged the consequences of delayed payments, and the government has implemented reforms in contract verification and engaged the Debt Management Office to manage the situation carefully, ensuring inflationary risks are minimized. The wage award was introduced as a temporary relief measure following the removal of fuel subsidies and the subsequent economic strain on public sector workers. Despite initial delays, the structured disbursement has offered partial respite to affected civil servants.

GOVERNOR OKPEBHOLO’S ADMINISTRATION GUARANTEES N100BN CREDIT FACILITY FOR CONTRACTORS TO BOOST INFRASTRUCTURE DEVELOPMENT

The Edo State Government has clarified that it is not taking a direct loan of N100 billion but is instead serving as a guarantor for contractors handling critical infrastructure projects across the state. Chief Press Secretary to Governor Monday Okpebholo, Fred Itua, made this known in a statement on Wednesday. In the statement, Itua explained that the government has secured a contractor-backed credit facility from First Bank Plc, with the state guaranteeing nominated contractors direct access to capital for their projects. “This clarification is crucial to correct any misconception arising from reports suggesting that the Governor had directly obtained an approval to borrow the aforementioned sum,” Itua said. The funds, which will be disbursed directly to contractors based on project demands, have a tenure of 40 months. Itua noted that the Edo State Government is fully committed to fulfilling its guarantee obligations by ensuring timely payments to the bank as agreed. “The Edo State Government is fully committed to fulfilling its guarantee obligations by ensuring timely payments to the bank as agreed, thereby guaranteeing the seamless and expeditious execution of these vital projects,” he added. Some of the priority projects earmarked for execution under this funding mechanism include the construction of a flyover bridge at Adesuwa Road, construction of Evbhukhu-Sapele Road with surface and underground drainage system in Oredo LGA, and construction of Eguaolor-Iguomo-Uvbenisi-Oza Road with Spur to Ohe community in Uhunwonde LGA, among others. Itua described the strategy as a “pragmatic and fiscally responsible model” designed to ensure that contractors have adequate funding to complete projects efficiently. “This innovative approach is a deliberate move by Governor Okpebholo’s administration to accelerate the development of key infrastructure across Edo State,” the statement added.