FG pays N152bn to contractors as protests linger

The Federal Government has said it has disbursed N152bn to contractors for what it described as verified contracts, amid lingering protests over outstanding payments.

In a statement on Thursday, the Minister of State for Finance, Doris Uzoka-Anite, said the payments followed strict verification procedures in line with existing laws and regulations.

Uzoka-Anite noted that the Federal Ministry of Finance was aware of the financial strain contractors had faced due to payment delays and pledged that the ministry would continue to process all valid payment requests.

“I wish to confirm that the Federal Ministry of Finance has disbursed a total of N152bn to contractors for verified contracts,” she said in a statement posted on her X (formerly Twitter) page.

“Every payment undergoes rigorous verification in accordance with extant laws and regulations, ensuring the protection of taxpayers’ funds and upholding accountability and transparency.

“The Ministry acknowledges the financial pressures that delays in payment may have placed on contractors. We remain committed to continuous dialogue and engagement, seeking effective resolutions to all conflicts”, the statement read.

Local contractors have, since 2025, staged protests over what they described as a growing backlog of unpaid bills for projects executed for the Federal Government.

Operating under the umbrella of the All Indigenous Contractors Association of Nigeria, the protesters have at different times blocked the gates of the finance ministry and the National Assembly complex to press their demands.

In December 2025, President Bola Tinubu inaugurated a multi-ministerial committee to address the dispute, with outstanding claims estimated at about N1.5tn.

Members of the committee include the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Budget and Economic Planning, Atiku Bagudu; the Director-General of the Budget Office, Tanimu Yakubu; the Minister of Works, Dave Umahi; the Minister of Housing and Urban Development, Ahmed Dangiwa; and the Chairman of the Federal Inland Revenue Service, Zacch Adedeji.

A Senate committee had also invited Edun to explain the circumstances surrounding the delayed payments.

The protests escalated again on Monday when contractors blocked the gate of the Federal Ministry of Finance, preventing Uzoka-Anite from accessing the complex.

The situation degenerated into a scuffle between security operatives attached to the minister and the protesters, during which a gunshot was reportedly heard as security personnel attempted to disperse the crowd.

PUNCH Online reports that the Federal Government budgeted N1.7tn in the 2026 Appropriation Bill to settle outstanding debts owed to contractors for capital projects executed in 2024.

A breakdown of the proposed 2026 national budget shows that the amount is captured under the line item titled “Provision for 2024 Outstanding Contractor’s Liabilities,” signalling official recognition of delayed payments to contractors amid recent protests over delayed settlements.

This budgetary provision follows mounting pressure from indigenous contractors and civil society groups who, in 2025, raised alarm over unpaid contractual obligations.

In addition to the N1.7tn for 2024 liabilities, the government has also budgeted N100bn for a separate line item labelled “Payment of Local Contractors’ Debts/Other Liabilities”, which may cover legacy debts from previous years, smaller contract claims, or unsettled financial commitments that were not fully verified in the current audit cycle.

The total N1.8tn allocation is part of the broader N23.2tn capital expenditure in the 2026 fiscal plan, which seeks to ramp up infrastructure delivery while cleaning up past obligations. (Punch)