Tension heightened in Abuja on Wednesday as members of the All Indigenous Contractors Association of Nigeria staged a massive protest at the Federal Ministry of Finance headquarters, demanding payment of over ₦4 trillion arrears for completed capital projects executed in 2024.
The protesters, numbering in their hundreds, blocked the entrance to the Ministry, disrupting official activities and preventing staff and vehicles—including the convoy of Finance Minister Wale Edun—from accessing the premises.
According to the Association’s Secretary, Babatunde Seun, the demonstration was sparked by the government’s alleged failure to honor repeated assurances of payment.
Seun disclosed that the contractors had engaged both the Accountant General of the Federation, Shamseldeen Ogunjimi, and the Minister of Finance on multiple occasions.
During their last meeting, they were promised that all finalized payments would be credited to their accounts within 48 hours.
However, only five contractors out of 5,000 members reportedly received funds.
“They have not fulfilled their promise. The government continues to deceive us.
Many of us have completed our jobs, handed over certificates, yet we remain unpaid.
Out of 5,000 contractors, only five have been settled. This is unacceptable,” Seun lamented.
He further accused the Ministry of releasing project warrants without cash backing, describing the move as a “deliberate act to frustrate indigenous contractors.”
Beyond the financial strain, the contractors highlighted the devastating social consequences of the unpaid arrears.
Many said they had slipped into debt, while others could not meet basic family obligations such as paying school fees and providing healthcare.
Seun voiced the frustrations of his colleagues:
“We have run out of cash, out of business, and out of everything.
Schools are resuming, yet many of us cannot pay our children’s fees. This is not the Nigeria we worked for.”
Placards carried by protesters bore inscriptions such as “National Assembly watching Nigerian contractors suffer injustice” and “Pay us our money for completed projects.”
The Indigenous Contractors vowed to continue their protest until all outstanding payments were cleared.
“Until every one of our members is paid, we will not leave the streets. If it takes us until December, so be it. The Ministry will not function while we are left to suffer,” Seun warned.
Their action underscores growing tensions between the government and contractors who executed infrastructure and public service projects under the 2024 national budget.
Nigeria has long struggled with a backlog of unpaid capital project funds.
Budget experts estimate that arrears owed to contractors run into several trillions of naira, partly due to revenue shortfalls, debt servicing pressures, and delays in cash releases by the Ministry of Finance.
The situation worsened in 2024 as falling oil revenues, rising debt obligations, and fiscal restructuring under President Bola Tinubu’s administration forced the government to prioritize recurrent spending over capital disbursements.
Analysts warn that persistent delays in settling contractors could stall ongoing projects, discourage private sector participation in public contracts, and undermine confidence in Nigeria’s procurement system.
Civil society groups have also weighed in, urging the federal government to adopt a transparent payment schedule and ensure fairness in contractor settlements.
An Abuja-based public finance expert, Dr. Kehinde Adigun, told reporters that selective payments risk fueling corruption:
“If only a handful of contractors are paid while others are sidelined, it raises questions about favoritism and transparency.
The government must release clear timelines and publish records of payments made.”
As of press time, neither the Ministry of Finance nor the Office of the Accountant General had issued an official response to Wednesday’s protest.
Attempts to reach the spokespersons of both offices proved unsuccessful.
However, sources within the Ministry hinted that the government is “exploring phased settlements” of the arrears, citing cash flow constraints.
For now, the contractors remain adamant, vowing to sustain their protest until the ₦4 trillion backlog is cleared.
The standoff adds to the fiscal headaches confronting the Tinubu administration, already under pressure from organized labour and civil society over subsidy reforms and inflation.
If unresolved, the protest could escalate into a broader confrontation between indigenous contractors and the federal government, with far-reaching implications for Nigeria’s infrastructure delivery and economic stability.
