Contractors Protest At Finance Ministry, Reject FG’s N700bn Payment Claim

Contractors under the umbrella of the All Indigenous Contractors Association of Nigeria on Monday staged a protest at the Federal Ministry of Finance in Abuja, demanding payment of outstanding project funds and rejecting claims that the Federal Government had disbursed N700 billion to local contractors.

The protesters, who gathered at the ministry’s headquarters, said many members were yet to receive payments despite earlier assurances from government officials.

Speaking during the protest, the National President of the association, Jackson Nwosu, said contractors had previously met with officials of the ministry, where they were promised the release of about N40 billion to beneficiaries.

According to him, members had submitted verified payment lists across different categories of claims, with expectations that funds would begin reflecting in beneficiaries’ accounts last Friday.

“We were expecting all the payments to drop into beneficiaries’ accounts by Friday, but that did not happen. Only a few persons, from what we have seen, have received payments,” he said.

Nwosu accused the government of failing to honour agreements reached with contractors, warning against attempts to shift the burden of delayed payments onto contractors.

“We borrowed money from banks, financial institutions and private lenders to execute projects. Government is taking the glory while contractors are suffering,” he said.

The association’s National General Secretary, Babatunde Seun, also questioned reports that N700 billion had been paid to contractors, insisting members had not seen evidence of such disbursement.

“We came out this morning because of the news that N700 billion had been approved. We have submitted claims running into billions and many contractors have still not been paid. That is why we are here,” he said.

The contractors rejected proposals for partial payments, insisting that those who completed projects under previous budget cycles should be paid in full.

They further alleged that delays in the issuance of warrants to some ministries, departments and agencies were slowing down the payment process.

Another member of the association, Ndubueze Kingsley, described the situation as unprecedented, saying contractors who had completed jobs should not be subjected to prolonged payment delays.

“I have been a contractor for almost 25 years and this is the first time contractors are negotiating endlessly after completing jobs,” he said.

He added that the delay in payments had pushed some contractors into financial distress, with reports of business and asset losses.

The protesters vowed to remain at the ministry until their demands are addressed and all agreements with government officials are implemented.

Responding to the protesters, the Permanent Secretary, Special Duties at the Federal Ministry of Finance Nigeria, Mohammed Sanusi, clarified that the funds in question were not immediately available for disbursement, stressing the difference between approval and actual payment.

“It is not that the monies are on ground to pay the protesting contractors immediately. Some of these monies have been approved. Please get it clear, approval is different from payment,” he said.

Sanusi added that the government was working to settle outstanding liabilities following engagements with relevant financial authorities.

“N700 billion has been approved by the Federal Government for payment to contractors. An additional N70 billion has been assigned for payment to this association,” he said.

He assured that payment processes were ongoing and would soon begin to reflect in beneficiaries’ accounts.

“Payment will start dropping any moment from now,” he said.

The contractors, however, insisted that they would continue their protest until concrete payments are confirmed and all agreed obligations are fulfilled.

Efforts to restore calm continued as both parties maintained their positions on the status of the payments