Federal Government Disburses ₦152 Billion to Contractors Amid ₦4 Trillion Debt Protests
Contractors During Protest
The Federal Government of Nigeria has confirmed the disbursement of ₦152 billion to contractors for verified contracts, following intensified protests at the Federal Ministry of Finance headquarters. The payment aims to address a fraction of the estimated ₦4 trillion debt backlog claimed by the All Indigenous Contractors Association of Nigeria (AICAN) for capital projects executed during the 2024 fiscal year.
The confirmation was issued on Thursday, 22 January 2026, by the Minister of State for Finance, Dr Doris Uzoka Anite, through an official statement. This development follows a high-tension week in Abuja where local contractors blocked the ministry's premises, leading to disruptions in official activities and security scuffles.
Verification and Fiscal Accountability
The Federal Ministry of Finance (FMF) maintains that the ₦152 billion payout was only authorised following a rigorous multi stage verification process. According to the Ministry, these checks are essential under extant financial regulations to safeguard public funds and ensure that payments are only made for certified and completed works.
"Every payment undergoes rigorous verification in accordance with extant laws and regulations, ensuring the protection of taxpayers’ funds and upholding accountability and transparency," the Minister stated. While acknowledging the financial strain on indigenous firms, the Ministry emphasised that adherence to due process remains non-negotiable in the management of public liabilities.
The ₦4 Trillion Debt Conflict
Despite the recent disbursement, a significant gap remains between the government's verified payments and the contractors' claims. AICAN President, Mr Jackson Nwosu, asserts that the total outstanding liability for 2024 projects exceeds ₦4 trillion. Contractors argue that prolonged payment delays have triggered severe liquidity crises, including:
Bank Defaults: Many firms sourced project financing from commercial banks and are now facing asset seizures and mounting interest.
Project Abandonment: Sustained arrears have forced a halt in construction activities, threatening job security for thousands of site workers.
Operational Harassment: The Ministry noted that its personnel have faced "varying degrees of intimidation" from protesters, while contractors have accused security agencies of heavy handedness during peaceful demonstrations.
Budgetary Provisions for 2026
To mitigate the recurring crisis, the Federal Government has introduced specific line items in the 2026 Appropriation Bill currently before the National Assembly. These include a ₦1.7 trillion provision for "2024 Outstanding Contractor’s Liabilities" and an additional ₦100 billion earmarked for "Payment of Local Contractors’ Debts/Other Liabilities." These allocations signal an official recognition of the debt backlog and a move toward structured liquidation of legacy arrears.
The disbursement of ₦152 billion serves as an immediate intervention to calm industrial tensions, but it represents only a small portion of the total verified and unverified claims. For policymakers and infrastructure investors, the successful resolution of this ₦4 trillion dispute is critical for restoring confidence in the government as a reliable procuring entity. Continuous dialogue between the FMF and AICAN will be necessary to harmonise records and ensure that the ₦1.8 trillion provisioned in the 2026 budget is effectively deployed to revitalise the construction sector.
