In a dramatic escalation of tensions between the Federal Government and local contractors, members of the All Indigenous Contractors Association of Nigeria (AICAN) returned to the Federal Ministry of Finance on Tuesday, blocking both entrances to press for the immediate payment of long-overdue debts for completed government projects.
The protesters, led by the association’s National Secretary, Babatunde Seun-Oyeniyi, accused the Federal Government of repeatedly delaying settlements and failing to honour commitments made during previous meetings with ministry officials.
Contractor Payment: N500bn Debt Sparks Renewed Protests
Addressing journalists at the ministry entrance, Oyeniyi revealed that contractors are collectively owed more than N500bn for projects already completed and commissioned.
He lamented that despite multiple assurances from the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, no substantial payments have been made to date.
“After the National Assembly intervened, they told us that they will sit the minister down over this matter, and we immediately stopped the protest. But repeated follow-up meetings have produced no tangible progress,” Oyeniyi said.
The protest underscores growing frustration among indigenous contractors who claim that delayed contractor payment is jeopardizing business operations and, in some cases, causing financial ruin.
According to Oyeniyi, promises of funds have been made repeatedly, yet disbursement remains elusive.
“Even from the last conversation we had, we were told that up to N150bn was available to pay indigenous contractors. We don’t understand why there are further delays,” he added.
Allegations of Fund Shifting to 2026
Contractors also accused government officials of attempting to postpone payments into the next fiscal year, a move they described as a deliberate attempt to create a backlog of unpaid debts.
“The problem is that they want to put us into a backlog. They want to shift us to 2026. They will turn us into debt, and we don’t want that. We won’t leave here until we are paid,” Oyeniyi stressed.
The National Secretary further explained that some payment warrants have been sighted, but no actual cash has been released.
This has left contractors frustrated and questioning the government’s commitment to honoring agreements.
National Assembly Involvement and Previous Protests
This protest follows a series of confrontations with government authorities, including a November incident when contractors stormed the National Assembly, forcing the suspension of plenary for a week. At the time, they accused the government of failing to release funds budgeted for 2024 and 2025 projects.
Contractors contend that repeated delays not only violate contractual agreements but also negatively affect Nigeria’s economy by undermining small and medium enterprises engaged in public projects.
Public Demonstration and Contractor Voices
Tuesday’s protest saw contractors block both entrances to the finance ministry, carrying banners and placards with strong messages demanding contractor payment.
Slogans included, “Banks no longer have confidence in sponsoring government projects,” “Many contractors have lost their lives through suicide,” and “No payment to contractor, no peace.”
Chants of protest echoed through the ministry grounds:
“Na our money we need o, we don’t need anything, Wale Edun pay us, Tinubu pay us.” Contractors expressed their frustration over unfulfilled promises and urged immediate resolution to avoid further escalation.
Economic Implications of Delayed Contractor Payment
Industry analysts warn that delayed contractor payment has far-reaching consequences for Nigeria’s economy.
When contractors are not promptly paid, they cannot settle debts with suppliers, employees, and financial institutions, which disrupts cash flow and hampers project completion.
Furthermore, prolonged delays discourage local businesses from participating in government projects, limiting opportunities for job creation and economic growth.
This cycle of delayed payment threatens to undermine investor confidence and stall critical infrastructure development across the country.
Calls for Immediate Action
Oyeniyi appealed to the Federal Government to expedite payments, emphasizing that contractors have fulfilled their obligations.
“We have delivered projects as agreed. It is now the government’s duty to pay us what is owed,” he said.
Observers note that timely contractor payment is crucial for maintaining trust between the government and private sector stakeholders.
Experts urge the Ministry of Finance to provide a clear roadmap for disbursing outstanding funds to prevent further unrest.
Ministry Response and Next Steps
As of Tuesday, the Federal Ministry of Finance had not issued a formal statement regarding the protest, while officials remained largely unresponsive to inquiries.
However, industry watchers expect pressure from ongoing public demonstrations, media attention, and legislative oversight to compel the government to act.
The protest reflects a growing demand for accountability in managing public finances, particularly in disbursing funds allocated for contractors.
With cumulative debts exceeding N500bn, stakeholders argue that immediate intervention is necessary to avert broader economic and social consequences.
