The All Indigenous Contractors Association of Nigeria (AICAN) has disputed the federal government’s claim that N152 billion has been paid to clear their arrears, stating that only N20 billion has been received.

Rotimi Raheem, AICAN’s public relations officer, said that while some contractors had received limited payments, the bulk of the obligations remains outstanding. “About our members that they (government) are referring to, we only got N20 billion, not even the N152 billion that they said they want to send,” he told BusinessDay. He stressed that even if the N152 billion is fully disbursed, the government would still owe most of the verified claims.

The dispute comes amid mounting frustration over delayed payments, which many local contractors say has forced them to borrow to execute government projects, leaving some at risk of loan defaults and asset seizures.

Raheem explained that the N4 trillion owed represents 40 percent of the total capital projects executed in 2024, valued at about N12 trillion. He disclosed that Doris Uzok-Anite, minister of state for finance during a meeting with them (contractors) on Thursday assured the outstanding claims would be settled by March 31, 2026.

He described the latest federal government promise as a potential relief, but said contractors remain cautious. “She assured us that Mr. President gave them the mandate to pay everybody before March 31st,” he said.

While acknowledging the government’s effort, Raheem highlighted the lingering distrust due to repeated delays over the past year. According to him, previous assurances had failed to reach contractors’ accounts, leaving many firms struggling to manage operational costs, repay loans, and avoid asset seizures.

The federal government said the N152 billion payment followed rigorous verification processes designed to protect taxpayers’ funds and ensure transparency. In a statement, the ministry of finance acknowledged that delays had imposed financial strain on contractors but stressed its commitment to continue processing requests in a timely and consistent manner.

Peaceful protests over unpaid contracts have intensified since late last year, with demonstrators recently blocking access to the ministry in Abuja.

The disputes have drawn attention at the highest levels of government, with President Tinubu establishing a multi-ministerial committee to resolve the arrears, which were then estimated at about N1.5 trillion.

The committee includes ministers of finance, budget and economic planning, works and housing, alongside senior budget and revenue officials.

Lawmakers also summoned the finance minister to explain persistent delays, and the federal government has earmarked N1.7 trillion in the 2026 budget to settle contractor obligations.

Despite the recent assurances, AICAN had insisted that the protests will continue until all verified claims are settled. They say indigenous firms should not be treated differently from foreign companies, whose payments they claim are processed without delays.

The group estimates that only 30% to 40% of outstanding payments have been fulfilled, while warrants stopped being issued in May 2025, leaving many of them struggling to manage operational costs. (Vanguard)

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