Some contractors in charge of supplying food to inmates in correctional centres across the country have raised the alarm over alleged Federal Government’s failure to pay outstanding debts amounting to more than N30bn.
Two of the contractors, who claimed to have supplied meals to facilities under the Nigerian Correctional Service, stated that they had been owed for several months, including a backlog of approximately N7.7bn from late 2023, in addition to an unimplemented feeding rate approved since August 2024.
They also lamented that despite the government’s approval to increase the daily feeding allowance per inmate from N750 to N1,125, payments had continued at the old rate, creating a N23bn shortfall.
Concerns have emerged following the government’s inability to implement a revised feeding allowance approved over a year ago.
In August 2024, the Presidency approved an upward review of the daily feeding allowance for inmates from N750 to N1,125 per inmate, an adjustment due to rising food prices and the ripple effects of fuel subsidy removal.
The revised rate, which was expected to take effect from August 1, 2024, was aimed at improving the quality of meals provided in correctional centres and easing financial pressure on contractors.
Over a year later, suppliers lamented that the reviewed rate remained unimplemented, leaving them to operate under the old payment structure.
Findings revealed that the contractors are being owed approximately N7.7bn for the months of October, November, and December 2023.
Over 12 months, the gap has increased into an estimated N23bn debt, in addition to the existing N7.7bn backlog, bringing the total amount owed to about N30.7bn.
Speaking on the condition of anonymity because of the fear of victimisation, some contractors described the situation as “dire” and unsustainable.
A contractor who supplies one of the correctional centres said he hadn’t been paid for some months.
He added that the situation had made business unbearable.
The frustrated businessman noted, “We have not been paid for months, yet we are expected to feed thousands of inmates every day,” said one contractor who supplies food to multiple correctional facilities. Banks are threatening to seize properties we used as collateral. Some of our colleagues have lost everything.”
Another contractor echoed similar frustrations, adding that they had resorted to high-interest bank loans to continue food deliveries.
