Payment Delays Undermine Economic Growth – Contractors

Members of the All Indigenous Contractors Association of Nigeria (AICAN) have lamented that persistent delays in the payment of contractors for completed federal government projects are undermining economic growth and worsening unemployment nationwide.

The contractors on Monday resumed protests in Abuja over the alleged non-payment of about N4 trillion owed for projects executed under the 2024 Federal Government budget.

They barricaded the entrance of the Federal Ministry of Finance, vowing not to vacate the premises until their outstanding payments are released.

Speaking to journalists on the second day of the protest, a national executive member of AICAN, Mr Johnson Akinsehinwa, said the continued withholding of contractors’ payments was harming the economy and placing businesses under severe financial strain.

He warned that the situation could lead to job losses and increased social instability, including insecurity, banditry and insurgency, particularly among unemployed youths.

According to him, many contractors involved in the protest employ hundreds of workers whose livelihoods depend on timely government payments.

“Nigeria’s economy is largely driven by government spending. Outside oil and a few agricultural products, the country is not export-driven. Capital releases are what stimulate economic activities,” Akinsehinwa said.

He added that delays in budget implementation had further compounded the problem, noting that the 2024 budget was reportedly implemented at about 50 per cent.

“When budgets are not fully implemented, it becomes difficult to roll out new ones. This creates pressure on the economy and reduces employment opportunities generated through government projects,” he stated.