…FG assured that full obligations will be settled by March 2026
…contractors say the protest will continue
The All Indigenous Contractors Association of Nigeria (AICAN) has refuted claims by the Federal Government that N152 billion has been paid to clear their dues, saying only N20 billion has been received.
AICAN public relations officer Rotimi Rahim said that although some contractors have received limited payments, most of the obligations are outstanding. “About our members they (government) are mentioning, we only got N20 billion, not even the N152 billion they said they wanted to send,” he told BusinessDay. He stressed that even if the N152 billion is fully disbursed, the government will still have to pay most of the verified claims.
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The dispute comes amid growing frustration over delayed payments, which many local contractors say have forced them to borrow to execute government projects, putting some at risk of loan default and asset seizure.
Rahim explained that the balance of N4 trillion represents 40 per cent of the total capital projects executed in 2024, valued at about N12 trillion. He disclosed that the Minister of State for Finance, Doris Uzok-Aniete, during a meeting with them (contractors) on Thursday, assured that the outstanding claims would be settled by March 31, 2026.
He cited the latest federal government promise as potential relief, but said contractors remain cautious. “They assured us that Mr. President has ordered them to pay everyone before March 31,” he said.
Acknowledging the government's effort, Rahim highlighted the distrust created by repeated delays over the past year. According to him, previous assurances had failed to reach contractors' accounts, leaving many companies struggling to manage operating costs, repay loans and avoid asset seizure.
The Federal Government said the N152 billion payment followed rigorous verification processes designed to ensure the security and transparency of taxpayers' money. In a statement, the Finance Ministry acknowledged that the delays have placed financial pressure on contractors, but stressed its commitment to continue processing requests in a timely and consistent manner.
Peaceful protests over unpaid contracts have intensified since late last year, with protesters recently blocking access to the ministry in Abuja.
The disputes have attracted attention at the highest levels of government, with President Tinubu setting up a multi-ministerial committee to resolve the outstanding balance, then estimated at about N1.5 trillion.
The committee comprises senior budget and revenue officials as well as ministers of finance, budget and economic planning, works and housing.
The lawmakers also called on the Finance Minister to explain about the persistent delays, and the federal government has set aside N1.7 trillion in the 2026 budget to settle contractor obligations.
Also read: Contractors' alliance supports Finance Minister's 'organic' reforms, urges patience on loan settlement
Despite recent assurances, AICAN had insisted that the protest would continue until all verified claims were settled. He says indigenous companies should not be treated differently from foreign companies, whose payments he claims are processed without any delay.
The group estimates that only 30% to 40% of outstanding payments have been met, while the issuance of warrants ceases in May 2025, leaving many of them struggling to manage operating costs.
