FG to Sanction Contractors Hoarding Advance Payments — Umahi

The Federal Government has warned contractors in possession of Advance Payment Guarantees (APGs) who have failed to mobilise to site to immediately resume work or risk losing further financial approvals.

Minister of Works, David Umahi, gave the warning on Sunday, condemning what he described as the unacceptable practice of retaining government funds for four to five years without executing awarded projects, while still presenting payment certificates for additional disbursements.

Umahi said such actions contravene established procurement procedures and financial management standards, stressing that the ministry would no longer process or honour payment certificates from contractors who are yet to utilise previously released funds.

“I will not approve payment certificates for any contractor who has held government funds for four or five years and is seeking further payments without delivering on the project,” the minister stated.

He further criticised the alleged practice of diverting public funds into bank investments while applying for fresh government releases, warning that the current administration would not tolerate any form of financial indiscipline.

According to him, contractors must ensure that advance payments are strictly applied to the projects for which they were approved, noting that failure to comply would attract sanctions.

Reaffirming the government’s commitment to accountability and transparency in infrastructure delivery, Umahi emphasised that every naira spent on public works must translate into measurable value for Nigerians.

He added that the ministry would intensify monitoring mechanisms to guarantee responsible stewardship of public resources and timely completion of projects nationwide.