Contractors under the All Indigenous Contractors Association of Nigeria (AICAN) have returned to the streets, staging fresh protests at the Federal Ministry of Finance headquarters in Abuja over outstanding payments for completed federal projects.
The demonstration comes despite the Federal Government’s recent announcement that it had begun disbursing funds to verified contractors across the country.
FG Says Payments Ongoing For Verified Contractors
The Ministry of Finance had earlier disclosed that over 1,240 contractors with verified claims had been cleared for payment under a new disbursement cycle.
According to the ministry, the latest phase prioritised contractors with outstanding claims of about ₦100 million and below, in a bid to spread relief across more businesses.
Officials said the initiative was part of broader efforts to ease liquidity pressure in the construction sector and stimulate economic activity, noting that significant sums had already been processed in recent months.
The ministry also maintained that more than ₦700 billion in verified obligations had been worked on across different categories, with about ₦436.6 billion reportedly processed in May alone.
Contractors Dispute Payment Claims, Stage Protest
However, AICAN members insisted that the reality on the ground does not reflect the government’s claims, alleging that many contractors are still awaiting payment for jobs executed as far back as 2024.
The association’s National President, Jackson Nwosu, said despite assurances from government officials, only a small fraction of contractors had received any funds.
He added that the group had engaged with officials of the Ministry of Finance and the Office of the Accountant-General, where they were previously told that an initial tranche of about ₦40 billion would be released.
According to him, contractors had submitted verified documentation and expected payments to reflect in their accounts within days, but that expectation was not met.
AICAN’s National Secretary, Babatunde Seun, also dismissed claims that ₦700 billion had been disbursed, insisting that members had yet to see evidence of such widespread payments.
The protesters argued that delayed payments had left many contractors under severe financial pressure, with some reportedly indebted to banks, suppliers, and workers.
Finance Ministry Clarifies Payment Process
Responding to the concerns, the Permanent Secretary for Special Duties at the Ministry of Finance, Mohammed Sanusi, clarified that approval of funds does not automatically translate to immediate payment.
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He explained that the government was still processing outstanding obligations and working through verified contractor lists to ensure proper disbursement.
Sanusi also stated that ₦700 billion had been approved for contractors’ payments, with an additional ₦70 billion allocated to the association, assuring that funds would begin to reflect soon.
He urged patience from affected contractors, stressing that the payment process was ongoing and being handled in batches to ensure transparency and accountability.
The situation highlights growing tension between contractors and the Federal Government over delayed project payments, with many businesses warning that prolonged arrears could disrupt project delivery and economic stability.