Contractors under the All Indigenous Contractors Association of Nigeria have rejected claims that the Federal Government has disbursed ₦700 billion to their members, insisting that most outstanding payments for completed projects remain unsettled.
The contractors resumed their protest on Monday at the Federal Ministry of Finance headquarters in Abuja, citing continued delays in the payment of debts owed for projects executed in 2024.
Speaking during the protest, the National President of AICAN, Jackson Nwosu, said about 85 percent of contractors were yet to receive payment despite repeated assurances from government officials.
Nwosu said the association had earlier engaged the Ministry of Finance and the Office of the Accountant-General of the Federation, where they were informed that about ₦40 billion would be released initially to settle some of the outstanding obligations.
He explained that contractors had submitted verified payment documents across different categories and expected the funds to reflect in beneficiaries’ accounts by the previous Friday, but that only a few persons had received payments.
“We were expecting payments to reflect in beneficiaries’ accounts by Friday, but that did not happen. Only a few persons have received payments,” he said.
Nwosu accused the government of failing to fully honour agreements reached with contractors, adding that many members of the association borrowed money to execute government projects and were now under serious financial pressure.
The National Secretary of AICAN, Babatunde Seun, also questioned reports that ₦700 billion had been disbursed, saying members of the association had not seen evidence of such payments.
“We came out because of reports that ₦700 billion had been approved. Many contractors are still unpaid,” he said.
He called on the Federal Government to fully pay contractors for completed projects, adding that delays in processing warrants across Ministries, Departments and Agencies had worsened the backlog of unpaid obligations.
Responding to the protesters, the Permanent Secretary, Special Duties, Ministry of Finance, Mohammed Sanusi, said approval of funds does not automatically mean immediate payment.
According to him, the government is still working through outstanding liabilities and the disbursement process is ongoing.
“Approval is different from payment. We are working on contractors’ payments,” Sanusi said.
He added that ₦700 billion had been approved for contractors, alongside an additional ₦70 billion for payments to the association, assuring that disbursements would begin soon.
The protest comes amid growing complaints from local contractors over delayed payments, with many insisting that non-payment of verified debts has affected their ability to return to project sites, service loans, pay workers and meet other financial obligations.
The post “Approval Is Different From Payment” — Indigenous Contractors Reject FG’s ₦700bn Disbursement Claim, Resume Protest appeared first on TheNigeriaLawyer.
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