Minister of Works, David Umahi has issued a firm warning to contractors holding Advance Payment Guarantees, APGs, for years without commencing work, directing them to return to their project sites immediately or forfeit further financial approvals.

Umahi faulted the practice of retaining Federal Government funds for four to five years without applying them to awarded contracts, while still submitting payment certificates to access additional funds.

He described the situation as unacceptable and contrary to standard procurement and financial management practices.

According to the minister, contractors must promptly resume work and ensure that advance payments are strictly utilised for the projects for which they were released.

He made it clear that the ministry would no longer process or honour payment certificates from contractors who are still in possession of unspent government 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,” he said.

Umahi also criticised the practice of investing public funds in banks while requesting fresh disbursements from the government, stressing that such actions would no longer be tolerated under the current administration.

He reaffirmed the Federal Government’s resolve to enforce accountability, transparency, and discipline in the execution of public infrastructure projects, noting that every naira spent must deliver value and reflect responsible stewardship of public resources.