Local contractors block finance ministry over N500bn unpaid debts
Local contractors from the All Indigenous Contractors Association of Nigeria demonstrated outside the Federal Ministry of Finance on Tuesday, obstructing both entrances to demand payment for what they referred to as long-overdue debts for completed government projects.
Babatunde Seun-Oyeniyi, the National Secretary of the association, led the protest and accused the Federal Government of consistently changing its position and failing to fulfill commitments made in prior meetings with officials.
While addressing reporters at the entrance of the ministry, Oyeniyi expressed that the government's ongoing failure to release funds despite numerous assurances has forced contractors to renew their protests. He mentioned that the association's members are owed over N500 billion for projects that have already been finished and commissioned.
Oyeniyi noted that, despite recent reassurances from Finance Minister Wale Edun, no payments have been disbursed.
“Following the intervention of the National Assembly, we were informed that they would discuss this issue with the minister. Consequently, we halted the protest,” he stated.
He mentioned that repeated meetings with the minister have resulted in no significant progress.
“They have not addressed our request,” he explained. “In fact, we have come here more than six times. Just last week, we stayed overnight until the Minister of Finance arrived.”
He further indicated that the contractors were perplexed by the ongoing delays, even after the minister allegedly confirmed that some funds were available. “In our last discussion, we informed him that he had mentioned having up to N150bn ready to pay all indigenous contractors. We are unclear why there are still delays.”
Oyeniyi explained that while some payment warrants have been observed, no actual funds have been released.
“Specifically, when we total the amounts, they owe over N500bn to all indigenous contractors. We only witness warrants; there is no actual cash available.”
He accused officials of attempting to postpone the payments to the following fiscal year. “The issue is that they want to push us into a backlog. They aim to defer us to 2026, assuring us that we will be paid then,” he claimed. “They intend to turn us into debtors, which we want to avoid. We won't leave until we are compensated.”
The contractors also mentioned that Edun had sent them back to the National Assembly, which had previously mediated their dispute. The ongoing standoff caused both ministry staff and visitors to be stranded as protesters blocked the two main entrances.
Numerous demonstrators carried signs conveying messages such as, “Banks no longer trust in funding government projects,” “Many contractors have taken their lives due to despair,” “Although we can no longer receive fair value for our money, compensate us for what you owe,” and “You are destroying small businesses; pay what you owe.”
Recent months have seen heightened tensions between the contractors and the government. In November, the House of Representatives halted plenary sessions for a week after contractors stormed the National Assembly Complex, accusing the government of failing to release funds allocated for 2024 and 2025.
The Finance Ministry has not yet released an official statement regarding Tuesday’s protest, and its officials have maintained silence.
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