Finance Ministry, contractors clash again over outstanding debt

•We processed N700bn payments to 1,240 local contractors – Ministry

•We have not received any money – Contractors

By Emma Ujah,  Abuja Bureau Chief & Progress Godfrey

At the backdrop of a resumption of protests by contractors, the Minister of  Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has said it approved payments to more than 1,240 contractors.

According to a statement signed by Efe Ovuakporie, Head Information and Public Relations of the Ministry of Finance, “Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less.

“The release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments, and support economic activity across the country.

“Over the past few months, the Federal Government has processed payments exceeding N700 billion across various categories of verified obligations owed to local contractors.

“Within the month of May alone, approximately ¦ 436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.

“By prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the Government is broadening the economic impact of these disbursements, supporting businesses across different sectors and regions of the country.”

But the contractors under the auspices of All Indigenous Contractors Association of Nigeria (AICAN) resumed protest at the Federal Ministry of Finance Headquarters, Abuja, yesterday saying the demonstration followed frustrations over long-standing arrears tied to 2024 project executions.

Speaking during the protest, the National President of AICAN, Mr Jackson Nwosu, said about 85 per cent of contractors were still unpaid, despite earlier assurances from government officials that funds were being processed.

He explained that the association had engaged with officials of the Ministry of Finance and the Office of the Accountant General, where they were informed that about N40 billion would initially be released to beneficiaries.

Nwosu said contractors had already submitted verified payment lists across different categories and were expecting funds to reflect in accounts by the previous Friday, but the expectation was not met.

“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.

National Secretary of the association, Mr Babatunde Seun, also questioned reports circulating that N700 billion had been paid to contractors, insisting that members had not seen any evidence of such disbursement.

Responding to the protesters, Permanent Secretary (Special Duties) at the Ministry of Finance, Mr Mohammed Sanusi, clarified that approval of funds does not equate to immediate payment, noting that the government was still working through outstanding liabilities.

“Some of these monies have been approved, please get it clear, approval is different from payment, we had a meeting with the Accountant General, we are working on contractors’ payment.

“N700 Billion has been approved by the Federal Government for payment to the contractors, extra fund of N70 Billion has been assigned for payment to this association. Payment will start dropping any moment from now,” Sanusi assured.

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