The Federal Government has announced the disbursement of ₦152 billion to contractors with verified claims, saying the payments followed due process designed to safeguard public funds and ensure accountability.
In a statement issued on Thursday, the Federal Ministry of Finance said all contract payments are subjected to multiple layers of verification in line with extant laws and regulations, stressing that the measures are necessary to protect taxpayers’ money and promote transparency in government spending.
“The process of payment for contracts goes through various verification processes in line with extant laws and regulations, to protect taxpayers’ money and ensure accountability and transparency,” the ministry said.
While acknowledging the financial strain delays have placed on contractors, the ministry appealed for continued engagement and dialogue as a means of resolving outstanding issues.
“We also plead for continuous dialogue and engagement for effective resolution of all conflicts,” the statement added.
The ministry further assured contractors of its commitment to open communication, urging them to respect laid-down procedures and officials responsible for processing payment requests.
“We assure all contractors of our continuous support and openness to constructive dialogue and urge all contractors to respect the process and the personnel of the Federal Ministry of Finance, who have had to endure different levels of intimidation and harassment,” it said.
According to the ministry, outstanding payment requests would continue to be processed in line with due process and handled in a “timely and consistent manner.”
As part of broader efforts to address contractors’ concerns and restore confidence among local firms, the Federal Government has proposed setting aside ₦1.8 trillion in the 2026 budget to clear outstanding payments for capital projects executed under the 2024 fiscal year.
Of this amount, ₦100 billion is earmarked specifically for indigenous contractors.
The proposed provision follows renewed protests by members of the All Indigenous Contractors Association of Nigeria (AICAN), who have drawn attention to mounting debts, liquidity challenges and prolonged payment delays.
AICAN President, Jackson Nwosu, said the protests were driven by growing desperation among contractors grappling with loan defaults and the risk of losing personal assets after borrowing to execute government projects.
“The government has failed to honour the agreement to pay contractors whose project details had been submitted and verified.
Payments finalised before the closure of the payment portal at the end of December never reflected in our accounts,” he said.
