The All Indigenous Contractors Association of Nigeria (AICAN) staged a protest at the Federal Ministry of Finance headquarters in Abuja on Monday, refuting reports that the Federal Government had disbursed N700 billion to settle outstanding liabilities owed to local contractors. The contractors blocked the ministry's entrance, clarifying that the disputed sum is part of an overarching N1 trillion debt for capital projects executed during the 2024 fiscal year.
Key Demands and Statements
Speaking during the demonstration, AICAN National President Jackson Nwosu revealed that approximately 85 per cent of indigenous contractors remain unpaid despite previous bureaucratic assurances. He explained that a reconciliation meeting with finance ministry officials and the Office of the Accountant General of the Federation (OAGF) had agreed to release an immediate tranche of N40 billion by last Friday, a deadline the government failed to meet.
“We were expecting all payments to drop into beneficiaries’ accounts by Friday, but that did not happen. Only a few persons have received payments. We borrowed from banks and private lenders to execute projects. Government is taking the glory while contractors are suffering,” Nwosu said.
Dispute Over Fiscal Data
National Secretary Babatunde Seun disputed the fiscal data in the public domain, stating that members had yet to see any bank alerts corresponding to the purported N700 billion release. He rejected the proposal of partial payments, blaming administrative delays on the slow issuance of cash warrants to various Ministries, Departments, and Agencies (MDAs).
“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. That is why we are here,” Seun said.
Psychological and Financial Toll
Veteran member Ndubueze Kingsley decried the psychological and financial toll of the impasse, lamenting that many local firms have suffered asset foreclosures due to accumulated bank interest. “I have been a contractor for almost 25 years, and this is the first time contractors are negotiating endlessly after completing jobs,” Kingsley said, vowing that the sit-in would continue until members' accounts are credited.
Government Response
Responding on behalf of the government, Permanent Secretary (Special Duties) Mohammed Sanusi sued for patience, explaining that the treasury was balancing multiple competing fiscal liabilities. He clarified that the N700 billion had indeed been approved by the presidency but noted that administrative cash backing protocols take time to process.
“Some of these monies have been approved. Please get it clear: approval is different from payment. We had a meeting with the Accountant General, and we are working on contractors’ payment. N700 billion has been approved by the Federal Government for payment to the contractors, and an extra fund of N70 billion has been assigned for payment to this association. Payment will start dropping any moment from now,” Sanusi said.
