For months, indigenous contractors in Abuja have protested unpaid federal projects, demanding immediate government attention.
Recently, the Federal Government agreed to release 35% of the ₦150 billion owed upfront.
Contractors Demand Immediate Payment
Following this, AICAN President Jackson Nwosu met Finance Minister Wale Edun to finalise the payment agreement.
The ₦150 billion forms part of a larger ₦1.15 trillion debt for 2024 capital projects.
Meanwhile, contractors resumed protests, urging the government to pay for verified federal projects without delay.
Until now, only ₦21 billion had been released, leaving contractors frustrated with slow disbursements.
Consequently, Nwosu described the meeting outcome as encouraging, hoping the government honours all promised payments.
Additionally, the government plans to disburse the remaining 65% of ₦150 billion gradually in phases.
Steps For Payment
To facilitate payments, contractors must now obtain updated batch numbers from relevant Ministries, Departments, and Agencies.
Furthermore, those without valid batch numbers must secure new warrants for the 2026 fiscal year.
Although the timeline is tight, the association emphasised this step marks progress in settling obligations.
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Earlier, in December 2025, President Bola Tinubu established a multi-ministerial committee to resolve contractor payment issues.
Despite budget allocations, payments proceed slowly, repeatedly causing tension between contractors and the federal government.
Importantly, the 2026 appropriation bill allocates ₦1.7 trillion for verified contractors, plus ₦100 billion for other local debts.
By January 2026, the Ministry of Finance had already released ₦152 billion for verified contracts nationwide.
Positive Outlook
Moreover, AICAN members warned of potential protests at the APC national convention over delayed payments.
This agreement signals recognition of contractors’ patience and their determination to secure deserved compensation.
Thus, the partial release represents a crucial first step in resolving Nigeria’s long-standing contractor debt crisis.
Now, contractors await phased payments while hoping the government honours remaining obligations fully and promptly.
Overall, the new arrangement provides cautious optimism for indigenous contractors who have struggled with financial uncertainty.
