N4trn debt: FG bows to pressure, pays N152bn to contractors 

By Emma Ujah

The Federal Ministry of Finance (FMF) has confirmed the payment of the sum of N152 billion to contractors out of the total debt estimated at N4 trillion, explaining that the delay in payment was due to the verification process.

This came at the backdrop of the long standing protests by the contractors over the delays in effecting the payments.

Local contractors who were owed over N4 trillion by the federal government had, on Monday, protested at the ministry’s headquarters in Abuja, demanding immediate payment of the money owed them.

The contractors under the umbrella of Indigenous Contractors Association of Nigeria (AICAN) on Monday blocked the FMF offices as they demanded immediate payment of the debt.

In a statement in Abuja, yesterday, the ministry said: “The process of payment for contracts goes through various verification processes in line with extant laws and regulations, to protect tax payers’ money and ensure accountability and transparency.

“While the Ministry acknowledges the financial strain the delay in payment has caused contractors, we also plead for continuous dialogue and engagement for effective resolution of all conflicts.

“FMF assures all contractors of our continuous support and openness to constructive dialogue and urge all contractors to respect the process and the personnel of the FMF, who have had to endure different levels of intimidation and harassment.

“We will continue to process all payment requests in line with due process in a timely and consistent manner.”

The demonstration on Monday came after a similar protest in December 2025, with contractors accusing the government of reneging on multiple payment commitments despite repeated assurances.

AICAN President, Mr. Jackson Nwosu, told journalists that  the renewed action was triggered by accumulating debt, worsening cashflow pressures, rising bank defaults, and asset seizures suffered by contractors who borrowed to execute government projects.

“The government has failed to honour the agreement to pay contractors whose project details had been submitted and verified. Payments finalised before the closure of the payment portal at the end of December never reflected in our accounts,” Nwosu said.

He dismissed claims that 80 percent of the debts had been settled, noting that at best only 30-40 percent of payments had been made, with warrants stopping in May 2025, adding that contractors continue to execute projects without corresponding payments, pushing total liabilities beyond N4 trillion.

The post N4trn debt: FG bows to pressure, pays N152bn to contractors  appeared first on Vanguard News.