Indigenous Contractors Accuse FG of Withholding ₦760 Billion, Threaten Nationwide Protest
The All Indigenous Contractors Association of Nigeria (AICAN) has accused the Federal Government of failing to release over ₦760 billion allegedly owed for completed 2024 projects, despite claims that payment warrants were issued more than two months ago. The group warned that continued non-payment could lead to widespread protests and disruption of upcoming federal projects.
Speaking at a press briefing in Abuja, AICAN President, Jackson Ifeanyi, said the prolonged delay in payments has pushed many local contractors to the brink of insolvency. He explained that most members executed their contracts using bank loans and personal funds, accumulating significant debt burdens as a result of stalled government disbursements.
“Many of our members borrowed heavily to complete these projects on time. Today, they are unable to meet their financial obligations because the Federal Government has refused to pay for work already verified and approved,” Ifeanyi stated.
He added that if the arrears remain unsettled by the end of the week, the association will mobilise its members for peaceful demonstrations across the Federal Capital Territory (FCT) to demand immediate action.
Allegations of Bias and Policy Inconsistency
AICAN’s Vice President, Fredrick Agada, accused some government agencies of favoring foreign contractors over indigenous firms in both project awards and payment prioritization. According to him, this bias undermines local industry growth and contradicts the administration’s commitment to promoting indigenous participation in national infrastructure development.
“While foreign contractors are cashing out, our members are dying in penury,” Agada said. “We contribute significantly to national development, yet we are treated as second-class citizens in our own country.”
He further cautioned that AICAN members would boycott 2025 federal projects unless mobilisation funds are released in advance to ensure financial viability.
Economic Implications of Delayed Payments
Industry analysts warn that delays in government payments to contractors could have ripple effects on the construction and infrastructure sectors, which collectively contribute over 9% of Nigeria’s GDP, according to data from the National Bureau of Statistics (NBS).
Prolonged debt exposure among contractors increases the risk of project abandonment, job losses, and banking sector instability, as many loans are tied to government receivables. Additionally, delayed settlement of obligations undermines investor confidence and contradicts the Federal Government’s stated policy of promoting transparency and accountability in public procurement.
Experts also note that empowering indigenous contractors through timely payments is critical for economic localisation, employment generation, and achieving the objectives of the Renewed Hope Infrastructure Development Agenda.
Government Response Pending
As of the time of reporting, the Federal Ministry of Finance and the Budget Office of the Federation had yet to issue an official response to AICAN’s claims. Attempts to verify the status of the alleged ₦760 billion payment warrant were unsuccessful.
However, policy observers have urged the government to address the grievances swiftly to prevent disruptions to ongoing and future infrastructure projects, which remain central to Nigeria’s economic recovery strategy.
The standoff between AICAN and the Federal Government underscores the urgent need for fiscal discipline, improved contract management, and prioritisation of indigenous capacity in national development.
Ensuring prompt payment to local contractors, analysts say, will not only restore confidence in the procurement system but also sustain momentum in infrastructure delivery and employment creation across the country.
