Indigenous contractors handling critical projects for the Federal Government have reached breaking point, issuing a stern ultimatum over unpaid contracts for 2024 projects that threatens to paralyze infrastructure development across Nigeria.
Contractors at Financial Brink
The National Association of Indigenous Construction Contractors (NAICC) has sounded the alarm, revealing that their members face imminent financial collapse due to the Federal Government's failure to release payments for projects already executed in 2024. Many contractors have exhausted their financial resources and are struggling to meet basic operational costs.
Seven-Day Ultimatum Issued
Through their legal representative, O. C. Okafor and Associates, the contractors have delivered a seven-day final notice to the Federal Government. If payments are not made within this period, they have vowed to mobilize their members for massive nationwide protests that could disrupt government activities and draw international attention to the crisis.
Deepening Sectoral Crisis
The payment delays have created a domino effect throughout the construction industry:
- Contractors unable to pay sub-contractors and suppliers
- Thousands of construction workers facing salary delays
- Critical infrastructure projects stalled across the country
- Equipment leasing companies withdrawing services due to unpaid bills
Legal and Economic Implications
The situation represents not just a financial crisis but a potential legal nightmare. Many contractors have taken bank loans to execute these projects and now face mounting interest payments and potential asset seizures. The association warns that the government's failure to honor its contractual obligations sets a dangerous precedent that could scare away future investors.
Call for Immediate Intervention
Industry experts are calling for urgent government intervention to prevent total collapse of the indigenous construction sector. The contractors emphasize that timely payment is crucial for maintaining momentum in national infrastructure development and preserving thousands of jobs in the construction industry.
The coming week will be critical as both parties watch the clock tick down on the ultimatum, with the entire construction sector holding its breath for a resolution that could determine its survival.
