KEY POINTS
- The Finance Ministry says it processed more than N700bn to over 1,240 local contractors.
- AICAN protesters at the ministry insist about 85 percent of contractors remain unpaid.
- Officials stress that approval differs from payment, promising disbursements will start soon.
Nigeria’s Finance Ministry and local contractors have clashed again over outstanding debt, as the government insisted it processed billions of naira while protesters maintained that the money had not reached them. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the ministry had approved payments to more than 1,240 contractors.
Ministry defends N700bn payout
In a statement signed by the ministry’s Head of Information and Public Relations, Efe Ovuakporie, the government said it prioritized contractors with verified claims of about N100 million or less. According to the statement, the release should give immediate relief to hundreds of businesses, allowing them to return to project sites, pay workers, settle suppliers and support economic activity.
Furthermore, the ministry said the Federal Government had processed payments exceeding N700 billion across various categories of verified obligations over recent months. In May alone, it processed about N436.6 billion in transactions, which it described as a significant acceleration in payment activity. Moreover, the statement said that, by prioritizing many smaller contractors rather than a few large beneficiaries, the government broadens the economic impact across different sectors and regions.
Contractors say money has not landed
However, members of the All Indigenous Contractors Association of Nigeria resumed their protest at the Finance Ministry headquarters in Abuja on Sunday, citing frustration over arrears tied to 2024 projects. AICAN National President Jackson Nwosu said about 85 percent of contractors remained unpaid, despite earlier assurances that funds were on the way.
According to Nwosu, the association met officials of the ministry and the Office of the Accountant General, who indicated that about N40 billion would go out first. Although members submitted verified payment lists and expected funds by the previous Friday, he said the money never arrived. Similarly, National Secretary Babatunde Seun questioned the reported N700 billion payout, insisting members had seen no evidence of it.
Responding to the protesters, Permanent Secretary for Special Duties, Mohammed Sanusi, stressed that approval does not equal immediate payment, because the government is still working through outstanding liabilities. “N700 billion has been approved by the Federal Government for payment to the contractors, and an extra fund of N70 billion has been assigned for payment to this association. Payment will start dropping any moment from now,” he said. Ultimately, the standoff leaves contractors waiting on disbursements that officials promise will follow soon.