Contractors Resume Protest Over Unpaid Project Funds, Reject FG’s N700bn Payment Claim

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Toyin Adebayo
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, disputing claims that the Federal Government had paid N700 billion to indigenous contractors.

The contractors said the disputed amount forms part of the over N1 trillion allegedly owed for capital projects executed in 2024, insisting that the majority of their members had yet to receive payment.

Speaking during the protest, AICAN National President, Jackson Nwosu, said about 85 per cent of contractors remained unpaid despite repeated assurances from government officials.

According to him, representatives of the association had previously met with officials of the Ministry of Finance and the Office of the Accountant-General of the Federation, where they were assured that about N40 billion would be released to beneficiaries.

Nwosu explained that contractors submitted payment schedules covering various categories of claims and were expecting funds to begin reflecting in their 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.

He accused the government of failing to honour agreements reached with contractors, stressing that many had borrowed heavily from banks, financial institutions and private lenders to execute public projects.

“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, Babatunde Seun, also challenged reports that N700 billion had been paid to local contractors, maintaining that members had seen no 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. That is why we are here,” he said.

Seun rejected proposals for partial settlements, arguing that contractors who had completed projects under previous budget cycles deserved full payment.

He added that delays in the issuance of warrants to some Ministries, Departments and Agencies (MDAs) were contributing to the slow pace of payments.

Another member of the association, Ndubueze Kingsley, described the situation as troubling, noting that contractors who had fulfilled their obligations should not have to struggle endlessly to receive 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 prolonged delays had pushed some contractors into severe financial difficulties, with some allegedly losing businesses and properties.

He vowed that protesters would remain at the entrance of the Finance Ministry until their demands were addressed and agreements reached with government officials were fully implemented.

Responding to the protesters, the Permanent Secretary, Special Duties, Ministry of Finance, Mohammed Sanusi, clarified that approval of funds should not be mistaken for immediate payment.

He said the government was managing multiple financial obligations and was working to settle outstanding liabilities.

“Some of these monies have been approved. Approval is different from payment. We had a meeting with the Accountant-General, and we are working on contractors’ payments,” he said.

Sanusi disclosed that the Federal Government had approved N700 billion for contractors’ payments and earmarked an additional N70 billion for members of the association.

He assured the protesters that disbursement would commence soon, saying, “Payment will start dropping any moment from now.”