Contractors operating under the All Indigenous Contractors Association of Nigeria (AICAN) on Monday returned to the Federal Ministry of Finance in Abuja to protest alleged delays in the payment of funds owed for completed government projects, rejecting reports that the Federal Government had disbursed N700 billion to indigenous contractors.
The aggrieved contractors said the government was still indebted to them to the tune of over N1 trillion for capital projects executed in 2024, insisting that most of their members had yet to receive any payment despite repeated assurances from relevant authorities.
Addressing protesters at the ministry’s headquarters, AICAN National President, Jackson Nwosu, said nearly 85 per cent of contractors were still awaiting payment.
He recalled that officials of the association had met with representatives of the Ministry of Finance and the Office of the Accountant-General of the Federation, where assurances were given that about N40 billion would be released to contractors.
According to him, payment schedules covering various categories of claims had already been submitted, with expectations that funds would begin reflecting in beneficiaries’ accounts last 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,” Nwosu said.
He lamented that many contractors had resorted to loans from banks, financial institutions and private lenders to execute government projects, warning that continued delays were pushing many businesses to the brink.
“Government is taking the glory while contractors are suffering. We borrowed money to execute these projects and now we are left to bear the burden of the delays,” he added.
Also speaking, the association’s National Secretary, Babatunde Seun, questioned reports suggesting that N700 billion had already been paid to local contractors, maintaining that members had not seen evidence of such disbursements.
“We came out this morning because of the news that N700 billion had been approved. We have submitted claims running into billions and many contractors have still not been paid,” he said.
Seun opposed proposals for partial payments, arguing that contractors who had fully executed projects under previous budget cycles deserved complete settlement of their claims.
He further attributed the slow pace of payment to delays in the issuance of warrants to some Ministries, Departments and Agencies (MDAs).
Another contractor, Ndubueze Kingsley, described the situation as unprecedented in his decades of experience in the sector.
“I have been a contractor for almost 25 years and this is the first time contractors are negotiating endlessly after completing jobs,” he said.
Kingsley noted that prolonged payment delays had plunged some contractors into severe financial hardship, leading to the loss of businesses and assets.
The protesters vowed to sustain their demonstration at the ministry until government fulfils its commitments and settles outstanding obligations.
Responding to the concerns, the Permanent Secretary, Special Duties, Ministry of Finance, Mohammed Sanusi, clarified that government approval of funds should not be misconstrued as immediate payment.
He explained that while the Federal Government had approved N700 billion for contractors’ payments and earmarked an additional N70 billion for members of the association, the process of disbursement was still underway.
“Approval is different from payment. We are working with the Office of the Accountant-General to ensure that contractors receive their payments. Payment will start dropping any moment from now,” Sanusi assured.
