85% Of Us Still Unpaid – Contractors Cry Out As FG Announces ₦700 Billion Debt Clearance

Contractors under the aegis of the All Indigenous Contractors Association of Nigeria (AICAN) have reportedly resumed protests at the Federal Ministry of Finance headquarters in Abuja.

The development comes shortly after the Federal Government announced that it has approved payments to more than 1,240 contractors with verified claims.

Naija News reports that the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this through a statement issued by the Head of Information and Public Relations of the Federal Ministry of Finance, Efe Ovuakporie.

According to the ministry, the latest payment batch prioritised contractors with verified claims of about ₦100m or less.

The statement said the release of the funds would provide relief to several businesses and enable contractors to return to project sites, pay workers, settle suppliers and meet other financial obligations.

The ministry said the Federal Government had, in the past few months, processed payments exceeding ₦700bn across different categories of verified obligations owed to local contractors.

It added that within May alone, about ₦436.6bn worth of transactions were processed as part of efforts to accelerate payments, improve liquidity and support economic activities.

The statement read, “Contractors prioritised for payment in the most recent batch are those with verified claims in the region of ₦100 million or less.

“The release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments, and support economic activity across the country.

“Over the past few months, the Federal Government has processed payments exceeding ₦700 billion across various categories of verified obligations owed to local contractors.

“Within the month of May alone, approximately ₦436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.”

The ministry said the decision to prioritise smaller contractors was aimed at ensuring that the impact of the disbursement was spread across more businesses and sectors.

“By prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the Government is broadening the economic impact of these disbursements, supporting businesses across different sectors and regions of the country,” the statement added.

Contractors Resume Protest

Despite the government’s position, reports have emerged about renewed protests by indigenous contractors over unpaid project arrears.

The protesters said the demonstration followed frustration over long-standing arrears linked to projects executed in 2024.

Speaking during the protest, the National President of AICAN, Jackson Nwosu, said about 85 per cent of contractors were still unpaid despite earlier assurances by government officials that their payments were being processed.

Nwosu said the association had held discussions with officials of the Ministry of Finance and the Office of the Accountant-General of the Federation, where they were informed that about ₦40bn would initially be released to beneficiaries.

He added that contractors had already submitted verified payment lists across different categories and expected the funds to reflect in their accounts by the previous Friday.

“We were expecting all the payments to drop into beneficiaries’ accounts by Friday, but that did not happen. Only a few persons, from what we have seen, have received payments,” Vanguard quoted Nwosu as saying.

AICAN Questions ₦700bn Claim

The National Secretary of the association, Babatunde Seun, also faulted reports that ₦700 billion had been paid to contractors.

Seun said members of the association had not seen evidence of such disbursement, insisting that many contractors were still waiting for payments despite completing government projects.

The protesters urged the Federal Government to match its assurances with actual payments, saying many contractors had borrowed money to execute projects and were under pressure from banks, suppliers and workers.

Approval Different From Payment – Official

Responding to the protesters, the Permanent Secretary, Special Duties, at the Ministry of Finance, Mohammed Sanusi, clarified that approval of funds does not automatically mean immediate payment.

Sanusi said the government was still working through outstanding liabilities and assured the contractors that efforts were ongoing to ensure the release of funds.

“Some of these monies have been approved, please get it clear, approval is different from payment, we had a meeting with the Accountant-General, we are working on contractors’ payment,” he said.

He further disclosed that ₦700 billion had been approved by the Federal Government for contractors’ payments, while an additional ₦70bn had been assigned for the association.

“₦700 billion has been approved by the Federal Government for payment to the contractors, extra fund of ₦70 billion has been assigned for payment to this association. Payment will start dropping any moment from now,” Sanusi assured.

The development comes amid growing pressure on the Federal Government to clear verified obligations owed to local contractors, many of whom say delayed payments have affected their businesses, workers and project delivery across the country.