The Federal Government has announced the disbursement of N152 billion to contractors for verified contracts, even as protests by indigenous contractors continue to disrupt activities around key federal buildings.
The payment, confirmed by the Minister of State for Finance, Doris Uzoka-Anite, is part of a broader effort to address the growing backlog of unpaid bills that has escalated into national agitation.
In a statement shared on her X handle on Thursday, Uzoka-Anite stated that the disbursement followed stringent verification procedures aligned with existing laws and regulations.
She also acknowledged the financial strain contractors have endured due to delayed payments and pledged that the Ministry of Finance would continue to process valid claims.
FG pays N152bn to contractors as protests linger
The Ministry of Finance said the payment was made only for verified contracts, with each claim subjected to rigorous checks to protect taxpayers’ funds and uphold accountability.
Uzoka-Anite said:
“Every payment undergoes rigorous verification in accordance with extant laws and regulations, ensuring the protection of taxpayers’ funds and upholding accountability and transparency.”
She added that the ministry was aware of the financial pressures contractors have faced and promised continued dialogue to resolve the dispute.
This announcement comes amid renewed protests by members of the All Indigenous Contractors Association of Nigeria, who have staged multiple demonstrations since 2025 to demand the settlement of outstanding debts.
The group has at times blocked the gates of the Federal Ministry of Finance and the National Assembly complex to press their demands.
The crisis gained national attention in December 2025 when President Bola Tinubu inaugurated a multi-ministerial committee to address the backlog, which was estimated at about N1.5 trillion.
The committee includes key government officials such as the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and Economic Planning, Atiku Bagudu; Director-General of the Budget Office, Tanimu Yakubu; and Minister of Works, Dave Umahi, among others.
In addition to the committee, the Senate also invited the Minister of Finance to explain the circumstances surrounding the delayed payments.
The move was seen as a signal of rising political pressure on the government to expedite settlements.
The protests escalated again earlier this week when contractors blocked the gate of the Federal Ministry of Finance, preventing Uzoka-Anite from accessing the complex.
The situation reportedly degenerated into a scuffle between security operatives attached to the minister and the protesters.
A gunshot was allegedly heard during the incident as security personnel attempted to disperse the crowd.
The demonstrations reflect deep frustration among contractors, many of whom have waited for months for payment for projects completed for the federal government.
While the N152 billion payment is a step toward easing tensions, contractors insist that the government must settle all outstanding claims.
2026 budget shows government’s plan to clear backlog
Our correspondent reports that the Federal Government budgeted N1.7 trillion in the 2026 Appropriation Bill to settle outstanding debts owed to contractors for capital projects executed in 2024.
The allocation is recorded under the line item titled “Provision for 2024 Outstanding Contractor’s Liabilities,” signaling official recognition of the payment delays.
In addition, the government has budgeted N100 billion for a separate line item labelled “Payment of Local Contractors’ Debts/Other Liabilities.”
This may cover legacy debts from previous years, smaller contract claims, or unsettled obligations that were not fully verified in the current audit cycle.
In total, the N1.8 trillion allocation is part of the broader N23.2 trillion capital expenditure plan for 2026, which aims to ramp up infrastructure delivery while cleaning up past obligations.
What the payment means for contractors
The N152 billion disbursement represents a significant step toward settling the backlog, but contractors have said it is not enough to end the protests.
Many industry players believe that the government needs to move beyond one-off payments and establish a clear timeline for clearing all verified claims.
Industry analysts say the government must also improve its contract management system to avoid a repeat of the current crisis.
They argue that delays in payment undermine investor confidence and can hinder the timely completion of key infrastructure projects.
A senior contractor who spoke anonymously said: “The payment is welcome, but it is only a fraction of what is owed. We need a full and transparent payment schedule that will ensure all verified contractors receive their dues.”
Government response and next step
The Ministry of Finance has reiterated its commitment to transparency and accountability in processing payments. Uzoka-Anite said the ministry will continue to process all valid requests and engage stakeholders in dialogue.
While the N152 billion payment may temporarily ease tensions, it is unclear whether it will end the protests.
Contractors have continued to demand immediate payment of the full backlog, and many analysts believe the issue will remain a key political and economic challenge for the government.
The multi-ministerial committee is expected to continue its work, and the government has indicated that more payments may follow as verification processes are completed.
However, the contractors’ demand for a definitive timeline remains.
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