Abuja, Nigeria – The Federal Government has agreed to pay 35% of N150 billion owed to indigenous contractors upfront. The deal followed a meeting between the All Indigenous Contractors Association of Nigeria and the Minister of Finance, Wale Edun. The remaining balance will be paid in phases over the coming weeks.
Okay News reports that the N150 billion represents a portion of an estimated N1.15 trillion in unpaid capital‑project contracts from 2024. Indigenous contractors have held protests in Abuja, demanding faster releases after years of delayed payments.
Contractors are required to obtain fresh batch numbers from relevant Ministries, Departments, and Agencies before payments can proceed. Those whose old warrants have expired must secure new ones for the current fiscal year. The association says the window to submit these details is short but still a step forward.
The government has already disbursed N152 billion to verified contractors since early 2026, according to the Ministry of Finance. However, AICAN insists that only about N21 billion of the N150 billion in dispute has been paid so far. The 2026 budget allocated N1.7 trillion to settle verified contractor liabilities plus another N100 billion for other local debts.
Disputes over unpaid contracts have become a recurring issue in Nigeria’s public finance system. Contractors argue that budgetary allocations often do not translate into actual cash, while officials say payments must pass strict verification and compliance checks. The current arrangement aims to ease tensions and keep small‑scale construction firms viable.
