A fresh disagreement has emerged between the Federal Ministry of Finance and indigenous contractors over the settlement of outstanding debts, as contractors resumed protests in Abuja, insisting that most of them are yet to receive payments despite government assurances.
The Ministry of Finance said it had approved payments for more than 1,240 contractors and processed over N700 billion in verified obligations owed to local firms. However, the contractors maintained that the majority of beneficiaries had not received any funds.
In a statement issued by the ministry’s Head of Information and Public Relations, Efe Ovuakporie, the government said contractors with verified claims of N100 million or less were given priority in the latest payment batch.
According to the statement, the disbursement is expected to enable businesses to return to project sites, pay employees, settle suppliers, fulfil financial obligations, and stimulate economic activities nationwide.
The ministry added that the Federal Government had processed payments exceeding N700 billion over the past few months, with about N436.6 billion handled in May alone, reflecting what it described as a significant increase in payment activities aimed at improving liquidity and supporting economic growth.
It also explained that prioritising smaller contractors would spread the economic benefits across more businesses and regions instead of concentrating payments among a few large companies.
Despite the government’s position, members of the All Indigenous Contractors Association of Nigeria (AICAN) staged another protest at the Ministry of Finance headquarters, saying delays in settling debts for projects executed in 2024 had left many businesses struggling.
Speaking during the demonstration, AICAN National President, Jackson Nwosu, said nearly 85 per cent of contractors were still awaiting payment despite previous assurances that funds would soon be released.
He disclosed that the association had held meetings with officials of the Ministry of Finance and the Office of the Accountant General, where they were informed that about N40 billion would initially be disbursed to contractors.
According to him, verified payment lists had already been submitted, and members expected the money to reach their accounts by the previous Friday, but only a handful of contractors had reportedly received payments.
“We expected the payments to reflect by Friday, but that did not happen. From what we have observed, only a few beneficiaries have been paid,” Nwosu said.
Also speaking, the association’s National Secretary, Babatunde Seun, questioned reports that over N700 billion had already been paid, arguing that members had not seen evidence of such widespread disbursement.
Responding to the protesters, the Permanent Secretary (Special Duties) at the Ministry of Finance, Mohammed Sanusi, clarified that government approval of funds should not be mistaken for immediate payment.
He explained that while N700 billion had been approved for contractors, the payment process was still being implemented. He further stated that an additional N70 billion had been allocated specifically for members of the association and assured them that payments would begin reaching beneficiaries’ accounts shortly.