Joan Nezi, Abuja
Abuja, Nigeria – The spotlight turned to Nigeria’s capital this week as frustrated local contractors rallied outside the headquarters of the Office of the Accountant General of the Federation (OAGF) and the Ministry of Finance in Abuja, demanding overdue payments for federal contracts executed during the 2024 budget year.
In response, the House of Representatives has placed the matter on its floor, calling for immediate settlement of outstanding liabilities and launching oversight probes into payment approvals.
Contractors Sound the Alarm
Leading the charge is the All Indigenous Contractors Association of Nigeria (AICAN), which alleges that thousands of indigenous contractors who completed federal jobs in 2024 remain unpaid, with many now facing bankruptcy and severe financial distress.
At last Wednesday’s protest, contractors blocked the entrance to the Ministry of Finance, carried placards reading “We delivered our projects, now pay us money” and declared they would begin nation-wide protests this month if payments weren’t forthcoming.
One AICAN leader lamented:
“We are dying. Financial institutions are on our necks every day because the government claims to have paid us, but they haven’t.”
Parliament Steps In
The House of Representatives has responded by initiating a probe into some N2.4 trillion in payment approvals meant for local contractors, asking the Accountant-General’s office to provide documentation and details of payments made.
An earlier resolution passed by the House in May 2025 urged the Executive to:
clear outstanding debts owed to contractors;
institute a transparent payment mechanism;
ensure prompt release of funds for capital projects.
The oversight committee, chaired by Deputy Speaker Benjamin Kalu, has scheduled further meetings with the Finance Ministry and AICAN to negotiate a roadmap for settling the debts.
What’s at Stake
The financial implications are significant: contractors warn that delayed payments are stalling ongoing project delivery, disrupting livelihoods, and undermining confidence in the execution of the 2024 capital budget.
Moreover, this standoff threatens broader economic stability. With many contractors relying on bank loans to deliver government projects, non-payment risks triggering business closures, job losses, and a slowdown in infrastructure rollout.
Government & Contractors: The Lines Are Drawn
While government officials assert that most liabilities for 2024 have been cleared, contractors remain unconvinced — insisting that many verified contracts still await payment and that foreign firms continue to receive preferential treatment.
AICAN has warned that unless the government honours its obligations, its members nationwide will refuse mobilisation for 2025 projects and embark on escalating protests.
Outlook
In the coming days, key developments to watch include:
Whether the Finance Ministry releases an accelerated payment schedule;
If the House of Representatives’ oversight committee publishes its findings and demands immediate action;
Whether contractors indeed suspend new contracts for early 2025 in protest, and how the government responds.
If left unresolved, the payment dispute could erode confidence in Nigeria’s ability to deliver infrastructure and undermine trust in public procurement processes.
The pressure is now on, and whether the government or contractors blink first remains to be seen.
