The Federal Government has confirmed paying N152 billion to contractors for verified contracts, as indigenous contractors resumed protests in Abuja over alleged unpaid debts allegedly running into trillions of naira.
The payment was confirmed in a statement by the Federal Ministry of Finance, shared by presidential aide Dada Olusegun on X (formerly Twitter) on Thursday.
According to the statement, the payment followed due verification processes in line with existing financial regulations, ensuring accountability and protecting public funds.
“The process of payment for contracts goes through various verification processes in line with extant laws and regulations, to protect taxpayers’ money and ensure accountability and transparency,” the ministry said.
Olusegun reiterated the ministry’s commitment to resolving the issue, saying, “While the Ministry acknowledges the financial strain the delay in payment has caused contractors, we also plead for continuous dialogue and engagement for effective resolution of all conflicts”.
Persecondnews reported that the contractors are demanding payment of approximately N4 trillion allegedly owed by the Federal Government for “completed 2024 capital projects.”
Despite the government’s efforts, contractors insist that substantial balances remain unpaid, particularly for indigenous firms with limited access to credit and working capital.
The Federal Government has made fresh budgetary provisions to address contractor debt, earmarking N100 billion in the 2026 Appropriation Bill for payment of local contractors’ debts.
However, contractor groups argue that this amount is insufficient compared to claims of liabilities running into trillions of naira.
Persecondnews also recalls that on Monday, hundreds of indigenous contractors had gathered outside the Federal Ministry of Finance in Abuja, protesting the government’s failure to settle the debts for completed projects.
The demonstration, led by the All Indigenous Contractors Association of Nigeria (AICAN), marks the latest escalation in a long-standing dispute between the government and local contractors.
The contractors claim that despite repeated assurances, the government had reneged on payment commitments, leaving many facing severe financial difficulties.
According to AICAN President Jackson Nwosu, the government’s failure to honour agreements has led to accumulating debt, worsening cash flow pressures, and rising bank defaults.
“The government has failed to honour the agreement to pay contractors whose project details had been submitted and verified.”
“Payments finalised before the closure of the payment portal at the end of December never reflected in our accounts,” Nwosu said, dismissing claims that 80% of debts had been settled.
Tensions flared during the protest when security personnel fired a warning shot into the air as the Minister of State for Finance, Doris Uzoka-Anite, attempted to enter the ministry complex.
Fredrick Agada, Vice President of the Association of Indigenous Contractors of Nigeria (AICAN), condemned the act as an attempt at intimidation, asserting that the demonstrators remained peaceful and unarmed in their demand for outstanding payments.
Also, the association’s Secretary-General Babatunde Oyeniyi further cautioned that the continued neglect of local contractors is stifling the domestic economy.
He maintained that the protest would persist until all verified debts are settled, emphasizing that indigenous firms deserve the same prompt payment terms currently afforded to their foreign counterparts.
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