Reject N150m Drug Sale Proposal for Unpaid Contractors

By Achadu Gabriel | Kaduna

A coalition of more than 400 contractors engaged under an alleged N38 billion agreement with the Kaduna State Government has accused the state of failing to settle payments for completed projects since 2023, warning that affected contractors may begin decommissioning boreholes and retrieving supplied items.

The allegations were made during a press conference in Kaduna on Saturday by the Chairman of the Eagle Brain Human Rights Organization, Comrade Daniel Ejembi, who spoke on behalf of the contractors.

According to the group, the Kaduna State Government entered into the contract arrangement in 2023 through a firm identified as Formal Act Legacy for projects spread across the state.

Ejembi alleged that contractors mobilised to project sites, supplied equipment, drilled boreholes, and completed assignments based on directives issued through the Ministry of Local Government.

He further claimed that the Commissioner for Local Government, Sadiq Mamman Lagos, acting through a committee chaired by the ministry’s Permanent Secretary, instructed contractors to return to site and complete pending projects despite existing payment concerns.

The contractors said many of them secured loans from banks and private lending firms at high interest rates to execute the projects.

“To date, not a single kobo has been paid. No explanation has been given. No meeting has been convened to brief these contractors on the cause of the delay,” the group alleged.

Contractors reject N150m drug sale arrangement

The contractors also rejected a proposal linked to the reported sale of drugs allegedly left behind by the Managing Director of Formal Act Legacy.

According to the group, the drugs were sold for N150 million, with plans to distribute the proceeds among nearly 300 contractors.

“Let us be clear: N150 million divided among 400 contractors amounts to less than N500,000 each. This is a mockery of the millions owed to each contractor and a deliberate attempt to dismiss legitimate claims with tokenism,” the organisation stated.

The contractors described the arrangement as inadequate compared to the scale of debts allegedly owed to them.

Financial hardship and loan pressures

The group claimed the prolonged non-payment had plunged many contractors into financial crisis, resulting in loss of homes, collapsed businesses, inability to pay school fees and medical bills, and mounting pressure from banks and loan companies.

Some contractors alleged that colleagues had suffered severe emotional distress, while others reportedly relocated abroad due to the financial burden.

“This has been so serious and so heavy on the contractors to the extent that quite a number of us have lost their lives. A number of us have run into the diaspora,” one contractor told reporters.

Another contractor said many were forced to obtain loans from informal lenders at exorbitant rates to complete projects after conventional banks declined assistance.

“It’s dehumanising. It has brought our dignity down,” the contractor said.

Projects and EFCC involvement

The projects reportedly included borehole drilling, supply of vehicles, generators, machines, and hospital equipment across several local government areas.

The contractors alleged that contract documents were signed by local government chairmen using official council letterheads, while Formal Act Legacy acted primarily as an intermediary and supervisory partner.

The group also disclosed that the Economic and Financial Crimes Commission (EFCC) had been involved following petitions submitted by contractors.

According to them, the anti-graft agency assessed claims from petitioning contractors at about N30 billion, while the contractors maintain that total liabilities stand closer to N38 billion.

“In fairness to EFCC, they have done their best,” the group said, noting that some recovered items had been sold following court approval, leading to payments for a few contractors.

Demand for audit and payment

The contractors and the Eagle Brain Human Rights Organization demanded immediate payment of outstanding debts, full disclosure on the alleged delay in payments, and an independent audit of both the N38 billion contract arrangement and the N150 million drug sale.

They also called for an end to what they described as harassment by financial institutions due to debts incurred while executing government-backed projects.

The group warned that contractors may begin dismantling boreholes and retrieving supplied materials if payments are not made promptly.

“This is not a threat. It is a last act of self-preservation after being pushed to the brink,” the contractors stated.

They appealed to the media, civil society organisations, and anti-corruption agencies to sustain attention on the issue until the government responds officially.