The Federal Ministry of Finance (FMF) has confirmed that it has paid N152 billion to contractors from an estimated total debt of over N4 trillion owed by the Federal Government, attributing delays in payment to ongoing verification procedures.
The confirmation follows renewed protests by contractors over prolonged delays in settling outstanding obligations.
On Monday, local contractors owed by the Federal Government staged a protest at the headquarters of the ministry in Abuja, demanding the immediate release of funds owed to them. The protesters, operating under the umbrella of the Indigenous Contractors Association of Nigeria (AICAN), blocked access to the ministry’s offices as part of their demonstration.
In a statement issued in Abuja on Tuesday, the ministry explained that payments for government contracts must undergo several verification stages in line with existing laws and regulations.
“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 stated.
While acknowledging the financial difficulties contractors have faced due to the delays, the FMF appealed for continued dialogue and engagement to resolve the issues.
“The Ministry acknowledges the financial strain the delay in payment has caused contractors, and we plead for continuous dialogue and engagement for effective resolution of all conflicts,” the statement added.
The ministry also assured contractors of its willingness to engage constructively, while urging them to respect the verification process and ministry personnel.
“FMF assures all contractors of our continuous support and openness to constructive dialogue and urges all contractors to respect the process and personnel of the ministry, who have had to endure different levels of intimidation and harassment. We will continue to process all payment requests in line with due process in a timely and consistent manner,” it said.
Monday’s protest followed a similar demonstration in December 2025, during which contractors accused the government of failing to honour multiple payment commitments despite repeated assurances.
Speaking to journalists, AICAN President, Mr. Jackson Nwosu, said the latest protest was prompted by rising debt levels, worsening cash flow pressures, increasing bank defaults, and the seizure of assets by financial institutions.
According to him, many contractors borrowed funds to execute government projects and are now facing severe financial hardship due to delayed payments.
“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,” Nwosu said.
He also dismissed claims that 80 per cent of the debts had been cleared, stating that only about 30 to 40 per cent of contractors had received payments.
Nwosu further alleged that payment warrants stopped coming in May 2025, even as contractors continued to execute projects without receiving funds, pushing the government’s total liabilities to over N4 trillion.
Contractors warned that persistent delays in payment could lead to job losses, business closures, and negative impacts on the broader economy.
FMF Confirms N152bn Payment to Contractors Amid N4trn Debt, Blames Delays on Verification Process
