Upaid N4trn Debts: Contractors Shut Finance Ministry Headquarters In Abuja

Indigenous contractors handling Federal Government projects have warned that persistent delays in settling verified contract payments were stalling economic growth, worsening unemployment and threatening social stability.

Members of the All Indigenous Contractors Association of Nigeria (AICAN), on Monday, barricaded the entrance of the Federal Ministry of Finance Headquarters in Abuja, demanding the payment of about N4 trillion allegedly owed for projects executed under the 2024 budget.

The protest, which entered its second day on Tuesday, disrupted activities at the ministry as contractors vowed to remain on the premises until their demands were met.

Speaking to journalists, Mr Johnson Akinsehinwa, a National Executive Member of AICAN, said failure to pay contractors for completed projects was damaging the economy and pushing businesses to the brink.

According to him, government spending remains a key driver of economic activity, noting that delays in releasing capital funds weaken job creation and strain contractors already grappling with rising costs.

“Nigeria is not a major exporting economy. Government expenditure is what drives most economic activities. When contractors are not paid, the ripple effect cuts across employment, productivity and security,” Akinsehinwa said.

He warned that prolonged non-payment could expose contractors to insolvency, while forcing many workers into joblessness, thereby increasing the risk of social vices, including insecurity and youth restiveness.

Akinsehinwa also faulted delays in budget implementation, disclosing that the 2024 budget had reportedly achieved only about 50 per cent implementation, compounding pressure on contractors and the wider economy.

“When previous budgets are not fully implemented, it becomes difficult to roll out new ones. This affects government-induced businesses and employment across sectors,” he added.

He urged the Federal Government to fast-track the release of outstanding funds, noting that procurement and verification processes for the payments had already been streamlined, while discussions with relevant authorities were ongoing.

Also speaking, another National Executive Member of AICAN, Mr Saidu Jega, said the government, through its Ministries, Departments and Agencies (MDAs), remained central to resolving the impasse.

He stressed that capital projects executed by contractors sustain thousands of jobs and livelihoods nationwide.

“Every contract engages workers with families depending on them. The economic impact of non-payment is far-reaching and cannot be ignored,” Jega said.

The contractors called for immediate payment to avert further disruption to economic activities and deepening hardship across key sectors of the economy.