Contractors Block Federal Ministry Of Finance, Demand Settlement Of N500bn Debt

Local contractors under the All-Indigenous Contractors Association of Nigeria on Wednesday intensified their agitation in Abuja, mounting a dramatic protest at the Federal Ministry of Finance over what they described as the federal government’s refusal to settle more than N500 billion owed for completed projects.

The demonstrators, who arrived at the ministry early in the day, blocked all entry and exit points to the ministry headquarters.

The protesting contractors, who displayed a coffin, chanted solidarity songs and insisted they would not vacate the premises until the outstanding payments were released.

Their action caused heavy gridlock within the Central Business District and left staff and visitors stranded for hours.

This is the second time they have blocked the gate to press their demand within the last month.
The Federal Ministry of Finance failed to issue an official statement regarding the contractors’ claims, leaving the standoff unresolved as the demonstrators vowed to continue occupying the premises.

Led by the association’s national secretary, Babatunde Seun-Oyeniyi, the group stated that the latest protest became necessary due to what they described as repeated broken promises and shifting positions by the Ministry of Finance.

According to them, several meetings held with government officials had failed to produce any concrete commitment toward clearing the backlog.

Speaking to journalists at the ministry’s gate, Oyeniyi said the contractors were frustrated by months of stalled assurances. He recalled that earlier in the year, the National Assembly had intervened in the dispute, persuading the contractors to suspend their demonstrations on the understanding that the ministry would fast-track payments.

However, he said the ministry became unresponsive once the protests were suspended.

“After the National Assembly stepped in, they told us they would sit the minister down over this issue, and we immediately halted our protest,” Oyeniyi recounted. “But since then, nothing has changed. We’ve visited this place more than six times. Last week, we were here all night before the Minister of Finance came out to address us.”

He added that contractors had “verifiable” evidence that funds were available and referenced their last discussion with the minister. “From our last conversation, the minister told us about N150 billion was ready to pay indigenous contractors. We don’t understand why the delay persists,” he said.

Although the contractors claimed to have sighted some payment warrants, Oyeniyi stated that the documents had not been cash-backed, leaving them financially vulnerable. “When we collated everything, they are owing more than N500 billion. We only see warrants—there’s no cash,” he stated.

The association also accused government officials of attempting to defer the payments into the 2026 fiscal year, warning that such a move would plunge many contractors and small businesses into deeper economic hardship. “They want to shift us into a backlog, push our claims to 2026, and turn us into debt. We won’t accept that. We won’t leave here until we are paid,” Oyeniyi vowed.

The protesters further alleged that the Minister of Finance, Wale Edun, had directed them back to the National Assembly—the same institution that previously intervened—creating fresh confusion and heightening mistrust between the contractors and government authorities.

Throughout the protest, demonstrators carried placards expressing their frustration and accusing the government of crippling indigenous businesses. Many claimed that banks had stopped financing government-related projects because contractors were no longer being paid. Some also lamented that several colleagues had died by suicide under the weight of mounting debts and prolonged financial distress.

Others argued that although rising inflation had significantly eroded the value of the money owed, the government still had a duty to honour its contractual obligations. For them, withholding payments for nearly a year amounts to what they described as an “economic crime,” insisting that persistent delays were not just unfair but tantamount to fraud.

Wednesday’s confrontation adds to growing tensions between the contractors and government agencies. In November, members of the House of Representatives suspended plenary for one week after contractors stormed the National Assembly Complex, accusing the government of withholding funds appropriated for the 2024 and 2025 fiscal years.