LOCAL contractors have vowed to continue their protest despite the Federal Government’s claim that it had paid N152 billion for verified projects after several months of protest by the contractors at the Federal Ministry of Finance headquarters in Abuja.
In a statement on Thursday, January 22, the Ministry of Finance said the payments were made after contracts passed multiple verification stages required under existing laws and regulations, a process it said was designed to protect taxpayers’ funds and ensure accountability and transparency.
The ministry acknowledged that delays had imposed financial difficulties on contractors but called for continued dialogue and engagement to resolve outstanding disputes.
Some of the contractors, however, said they were owed more than what the government released.
On Monday, January 19, protesters blocked the entrance of the Finance Ministry, preventing the Minister of State for Finance, Doris Uzoka-Anite, from entering the complex.
The standoff further escalated when security personnel fired a shot into the air to disperse the crowd, causing panic. There were no reported injuries.
The protesters, under the aegis of All Indigenous Contractors Association of Nigeria, said the Federal Government owed more than N4 trillion for completed projects. They accused authorities of reneging on commitments to settle verified claims.
They vowed that the protest would continue until all verified claims are fully paid, arguing that local firms should not be treated differently from foreign contractors.
According to them, repeated assurances since last year have failed to translate into payments for many firms, despite documentation being submitted and approved.
“The government has failed to honour the agreement to pay contractors whose project details have been submitted and verified. Payments finalised before the closure of the payment portal at the end of December were never reflected in our accounts,” Jackson Nwosu, president of the association, said.
Government officials insisted that significant progress had been made in clearing arrears, though contractors disputed that account.
The protest leaders said only 30 per cent to 40 per cent of outstanding obligations had been settled, with payment warrants stopping in May 2025.
Many indigenous firms, they argued, borrowed heavily to execute government contracts and were facing loan defaults, asset seizures and mounting interest costs as delays persist.
The ministry said it remained open to constructive engagement and called on contractors to respect established procedures and ministry personnel, noting that officials had faced intimidation and harassment during the protests. It also pledged to continue processing payment requests in a timely and consistent manner in line with due process.
Contractors, however, argued that security responses to their demonstrations were heavy-handed. “This is a peaceful protest. We are harmless. We are just sitting down peacefully, demanding our money, our payment,” Fredrick Agada, the association’s vice president, said.
The dispute has drawn attention at the highest levels of government. In December 2025, President Bola Tinubu set up a multi-ministerial committee to address contractor arrears, which were then estimated at about N1.5 trillion. The panel includes the Ministers of Finance, Budget and Economic Planning, Works and Housing, alongside senior budget and revenue officials.
Federal lawmakers have also stepped in, with a Senate committee summoning Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to explain the delays.
In its 2026 budget proposal currently before the National Assembly, the Federal Government earmarked N1.7 trillion to settle debts it owed contractors.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.