Niger Delta Minister Reveals Ministry’s Struggle with Over N50 Billion Debt to Contractors

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Minister of Niger Delta Affairs, Engr. Abubakar Momoh, has disclosed a significant financial challenge faced by the ministry, acknowledging a debt exceeding N50 billion owed to contractors for ongoing, executed, and abandoned projects.

Momoh brought attention to this issue during his appearance before a joint committee on Niger Delta Development Commission (NDDC), where he presented the 2024 budget and provided insights into the performance of the 2023 appropriation.

Momoh underscored the financial constraints, stating that the ministry’s budget is insufficient for its myriad responsibilities, with several crucial tasks being undertaken by other agencies. Notably, he pointed out the anomaly where an amnesty program, initially focused on disarmament, has expanded its scope to include development and empowerment initiatives.

Regarding the 2023 budget performance, Momoh highlighted the inadequacy of the budget, noting that out of the N11 billion approved, only N4.2 billion was released, resulting in a 37 percent performance rate. He emphasized the pressing need for sufficient funds, particularly for critical projects such as road construction.

Expressing concern about the substantial debt owed to contractors, Momoh revealed that the outstanding amount exceeds N50 billion, covering both completed and abandoned projects. He expressed a keen interest in addressing the numerous requests for training in the Niger Delta if the necessary resources were made available.

In response to queries about President Bola Tinubu’s awareness of the N50 billion debt, Momoh clarified that he had not discussed the issue with the President. The Senate committee chairman, Babajide Ipinsagba, stressed the urgency of settling the owed amounts, considering that many contractors had incurred loans for project execution.

Ipinsagba attributed payment delays to a flawed cash plan, highlighting the disjointed nature of the approval process and fund availability, resulting in protracted settlement times for contractors. The House committee chairman, Ugonna Ozurigbo, advised the minister to prioritize completing and commissioning existing projects rather than initiating new ventures that might face abandonment later on.

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