Subscribe: Gist E-Paper
Contractors owed by the Federal Government on Monday stormed the Federal Ministry of Finance in Abuja, demanding clarification over reports that N700 billion had been released for the settlement of outstanding contractual obligations.
The contractors, operating under the umbrella of the All Indigenous Contractors Association of Nigeria (AICAN), said many of their members had yet to receive any payment despite widespread reports that funds had been approved and disbursed.
According to the association, the disputed N700 billion forms part of an estimated N1 trillion owed to contractors for capital projects executed in 2024, with a large number of contractors still awaiting settlement months after completing their assignments.
Speaking during the engagement, AICAN President, Jackson Nwosu, said approximately 85 per cent of contractors had not received payment, despite previous assurances from government officials.
Nwosu recalled that the association had held meetings with representatives of the Ministry of Finance and the Office of the Accountant-General of the Federation, where members were informed that part of the outstanding liabilities would soon be settled.
“We were expecting payments to begin reflecting in contractors’ accounts after those meetings, but that has not happened for the majority of our members,” he said.
The association expressed dissatisfaction over reports that N700 billion had been released, insisting that many contractors had seen no evidence of the alleged disbursement.
Nwosu maintained that contractors who executed government projects should receive full payment for services rendered, stressing that prolonged delays were placing many indigenous firms under severe financial pressure.
Also speaking, AICAN National Secretary, Babatunde Seun, questioned the credibility of the reported payment, saying members remained in the dark over the status of their claims.
“We came here because of reports that N700 billion had been approved. Contractors are owed billions of naira and many of them have not received any payment. That is why we are seeking clarification,” he said.
Seun rejected suggestions that contractors should accept partial payments, arguing that projects executed under previous budget cycles should be fully settled without further delays.
Responding to the concerns, Permanent Secretary for Special Duties in the Ministry of Finance, Mohammed Sanusi, acknowledged that the funds had been approved but explained that approval did not automatically translate into immediate payment.
According to him, the government is currently addressing several financial obligations and taking steps to clear verified debts owed to contractors.
“Some of these funds have been approved. Approval is different from actual payment. We have met with the Accountant-General and efforts are ongoing to process contractors’ payments,” Sanusi said.
He disclosed that the Federal Government had approved N700 billion for the settlement of contractors’ claims and earmarked an additional N70 billion specifically for members of the association.
Sanusi assured the contractors that disbursement would commence soon, expressing confidence that payments would begin reaching beneficiaries' accounts in the coming days.
