The delayed settlement of vast sums owed to local contractors has become an unending, messy saga. With depressing regularity, each week unveils a new chapter in this sordid spectacle.
Recently, lawyers operating under the aegis of Concerned Lawyers for Probity and Justice staged a protest at the Federal Ministry of Finance in Abuja in support of indigenous contractors seeking payment for completed capital projects.
Joined by members of the Enough is Enough Movement and the All-Indigenous Contractors Association of Nigeria, the aggrieved lawyers asserted that government agencies owe contractors an estimated N4 trillion for capital projects already executed, according to a report in The PUNCH.
The protest followed a series of demonstrations by contractors in recent weeks over outstanding payments, some of which disrupted activities at the ministry’s headquarters. The lawyers demanded urgent action on the contractors’ claims and immediate settlement.
They noted that although some payments were reportedly made after earlier protests in December, many contractors with verified claims have yet to receive full payment.
According to the group, delays have placed contractors and their families under severe financial strain, with some already pushed into bankruptcy.
“Contractors who borrowed from banks at high interest rates to fund these projects now face relentless loan defaults, with banks seizing homes, vehicles and other assets,” the group stated.
Beyond the contractors themselves, unpaid debts are squeezing households and thousands of workers—masons, engineers and labourers—who depend on steady contracts for survival.
Amid the economic crunch triggered by the removal of fuel subsidy and the floating of the naira, the real value of these unpaid debts continues to erode in tandem with the currency’s depreciation.
As the protesters rightly observed, the lingering debt amounts to an abuse of power and an abridgement of the contractors’ rights by the government.
Distraught contractors reportedly staged as many as eight protests in 2025 at the Federal Ministry of Finance and the National Assembly. They cited delayed payments, favouritism, a growing backlog of bank loans used to finance contracts, and inefficient payment systems, among other grievances.
They have also demanded the resignation of the Minister of State for Finance, Doris Uzoka-Anite, accusing her of mishandling the crisis.
She has, however, responded by confirming on X that the Federal Ministry of Finance (@FinMinNigeria) has disbursed a total of N152 billion to contractors for verified contracts.
“Every payment undergoes rigorous verification in accordance with extant laws and regulations, ensuring the protection of taxpayers’ funds and upholding accountability and transparency,” she said.
“The Ministry acknowledges the financial pressures that delays in payment may have placed on contractors.
We remain committed to continuous dialogue and engagement, seeking effective resolutions to all conflicts.
“We also call on all contractors to respect the processes and personnel of the Ministry, who have shown unwavering dedication despite facing varying degrees of intimidation and harassment.”
Commentators have, however, accused the minister of insensitivity to the plight of local contractors. They criticised what they described as a subtle threat to contractors already under severe financial distress.
The government should immediately settle the local contractors by every means possible.
As the country’s biggest spender, government payments injected into the economy would make a significant difference. Owing contractors hurts the economy, hampers business operations, and sends the damaging signal that the government is bad business. It also encourages contract inflation as contractors attempt to hedge against delayed payments.
Part of the delay stems from hiccups in funding the capital components of the 2024 and 2025 budgets.
A few weeks ago, the National Assembly rolled over approximately 70 per cent of the 2025 capital budget into the 2026 fiscal year. It repealed and re-enacted the 2024 and 2025 Appropriation Acts, formally extending implementation of the 2025 capital component to March 31, 2026.
Shockingly, despite a directive to freeze new capital projects, an analysis of the proposed 2026 budget revealed that at least 82 MDAs inserted over 400 new project lines totalling approximately N3.50 trillion. These included new infrastructure and health investments, alongside substantial allocations for outstanding contractor liabilities.
Fiscal indiscipline manifests in serial abuses of the Procurement Act and critically disrupts payments to local contractors by creating severe cash shortages, fuelling legal disputes, and fostering financial instability that risks contractor insolvency.
When procurement procedures are bypassed, disregarded or corrupted, contractors suffer delayed payments, leading to project delays, cost overruns and, in many cases, abandoned projects.
The government must step in now to halt these unlawful practices and infuse integrity into the budgeting and procurement process, if it is to avoid perpetually owing local contractors.
