Contractors under the umbrella of the All Indigenous Contractors Association of Nigeria (AICAN) on Monday resumed protests at the Federal Ministry of Finance in Abuja, questioning reports that the Federal Government had paid N700 billion to local contractors.
The amount is part of the outstanding payments linked to the N1 trillion the contractors say is owed for capital projects executed in 2024.
Speaking during the protest, the association’s National President, Mr Jackson Nwosu, said many contractors were yet to receive payments despite previous assurances from government officials.
Nwosu said AICAN representatives had earlier met with officials of the Ministry of Finance and the Office of the Accountant General of the Federation, where they were informed that about N40 billion would be released to beneficiaries.
According to him, contractors submitted payment lists covering various categories of claims and expected the funds to 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,’ he said.
Nwosu said contractors had relied on loans and other sources of financing to execute projects and appealed to the government to expedite the payment process.
‘We borrowed money from banks, financial institutions and private lenders to execute projects. Government is taking the glory while contractors are suffering,’ he said.
The association’s National Secretary, Mr Babatunde Seun, also questioned reports that N700 billion had been paid to local contractors, saying members had not received confirmation of such payments.
‘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,’ he said.
Seun also opposed proposals for partial payments, insisting that contractors who completed projects under previous budget cycles should be fully settled.
He added that delays in the issuance of warrants to some Ministries, Departments and Agencies (MDAs) were affecting the payment process.
Another member of the association, Ndubueze Kingsley, described the situation as concerning, saying contractors who completed projects were still awaiting payment.
‘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 said delayed payments had created financial challenges for some contractors.
He added that protesters would remain at the ministry’s entrance until their concerns were addressed and agreements reached with government officials were implemented.
Responding to the protesters, the Permanent Secretary, Special Duties, Ministry of Finance, Mr Mohammed Sanusi, said the approved funds were still undergoing the necessary payment processes.
According to him, government is managing several financial obligations and is working to settle outstanding liabilities.
‘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’ payments.
‘N700 billion has been approved by the Federal Government for payment to the contractors. An additional N70 billion has been assigned for payment to this association.
‘Payment will start dropping any moment from now,’ Sanusi said.