Aisha Yesufu, a sociopolitical activist, has pushed for the passage of legislation requiring all Nigerian governmental levels to pay contractors’ invoices within 30 days of a project’s completion or service delivery.
In a post on Yesufu’s official social media page, she made the case that businesses, infrastructure development, and job creation nationwide have been negatively impacted by delayed payments to contractors.
Yesufu proposed that required interest be assessed at the current Central Bank of Nigeria Monetary Policy Rate plus an extra five percent for any unpaid balance that is more than thirty days old.
A robust, enforceable rule that requires all levels of government to pay contractors any outstanding invoices within 30 days, with required interest on any late payments, must be passed, she said.
She contended that many contractors finish projects only to experience protracted payment delays, which she claimed had caused financial issues for a number of enterprises.
According to Yesufu, “contractors will deliver on their work only for governments to delay payments for months or years, pushing many businesses into distress and liquidation.”
She claims that the new legislation would deter the practice of obtaining unauthorized credit for government projects from contractors.
“Contractors should no longer be used as unwilling bankers,” she continued. The activist went on to say that delayed contractor payments continue to be a significant obstacle to Nigeria’s infrastructure delivery, economic expansion, and job creation.
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