Finance Ministry and contractors clash again over unpaid debt

•We processed N700bn payments to 1,240 local contractors – Ministry

•We have not received any money – Contractors

By Emma Ujah, Abuja Bureau Chief & Progress Godfrey

Amid a renewed wave of protests by contractors, Finance Minister and Coordinating Minister of the Economy Mr. Taiwo Oyedele announced that payments had been approved for more than 1,240 contractors.

In a statement signed by Efe Ovuakporie, Head of Information and Public Relations at the Ministry of Finance, it was noted that “Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less.”

“The release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments, and support economic activity across the country,” the statement added.

“Over the past few months, the Federal Government has processed payments exceeding N700 billion across various categories of verified obligations owed to local contractors,” it continued.

“Within the month of May alone, approximately N436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.”

“By prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the Government is broadening the economic impact of these disbursements, supporting businesses across different sectors and regions of the country,” the statement concluded.

However, contractors affiliated with the All Indigenous Contractors Association of Nigeria (AICAN) resumed protests at the Federal Ministry of Finance Headquarters in Abuja, citing frustration over long‑standing arrears related to 2024 project executions.

During the demonstration, AICAN National President Mr. Jackson Nwosu said that about 85 percent of contractors remained unpaid, despite earlier assurances from government officials that funds were being processed.

He explained that the association had met with officials from the Ministry of Finance and the Office of the Accountant General, who informed them that approximately N40 billion would initially be released to beneficiaries.

Nwosu added that contractors had submitted verified payment lists across different categories and expected funds to be reflected in their accounts by the previous Friday, but the expectation was not met.

“We were expecting all the payments to drop into beneficiaries’ accounts by Friday, but that did not happen. Only a few persons, from what we have seen, have received payments,” he said.

AICAN National Secretary Mr. Babatunde Seun also questioned reports that N700 billion had been paid to contractors, insisting that members had not seen any evidence of such disbursement.

In response, Permanent Secretary (Special Duties) at the Ministry of Finance Mr. Mohammed Sanusi clarified that approval of funds does not equate to immediate payment, noting that the government was still working through outstanding liabilities.

“Some of these monies have been approved, please get it clear, approval is different from payment, we had a meeting with the Accountant General, we are working on contractors’ payment,” Sanusi said.

“N700 Billion has been approved by the Federal Government for payment to the contractors, extra fund of N70 Billion has been assigned for payment to this association. Payment will start dropping any moment from now,” he added.

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