Written by Emma Ujah
Out of the estimated N4 trillion total debt, the Federal Ministry of Finance (FMF) has verified paying contractors N152 billion, citing the verification process as the reason for the payment delay.
This occurred in the midst of the contractors’ protracted protests about the payment delays.
On Monday, local contractors who were owed more than N4 trillion by the federal government demonstrated at the ministry’s Abuja headquarters, asking that the money be paid to them right now.
The Indigenous Contractors Association of Nigeria (AICAN) group of contractors stopped the FMF headquarters on Monday, demanding that the debt be paid right away.
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“The process of payment for contracts goes through various verification processes in line with extant laws and regulations, to protect tax payers’ money and ensure accountability and transparency,” the ministry said in a statement released yesterday in Abuja.
“The Ministry recognizes the financial burden the payment delay has placed on contractors, but we also urge ongoing communication and cooperation to effectively resolve all disputes.
“FMF urges all contractors to respect the process and the FMF personnel, who have had to endure varying degrees of intimidation and harassment, and assures them of our unwavering support and openness to constructive dialogue.”
“We will continue to promptly and consistently handle all payment requests in accordance with due process.”
Monday’s protest followed a similar one in December 2025, when contractors accused the government of failing to fulfill many payment obligations in spite of repeated promises.
Mr. Jackson Nwosu, President of AICAN, told reporters that growing debt, deteriorating cash flow issues, an increase in bank defaults, and asset seizures experienced by contractors who borrowed money to carry out government projects were the reasons behind the new action.
“The government has not fulfilled its commitment to compensate contractors whose project specifications were submitted and validated. Nwosu stated, “Payments completed prior to the payment portal’s closure at the end of December never appeared in our accounts.”
He refuted assertions that 80% of the debts had been paid off, pointing out that at most 30–40% of the payments had been fulfilled and that warrants would expire in May 2025. He also mentioned that contractors are still carrying out projects without making the necessary payments, increasing the overall liabilities to more than N4 trillion.
