The All Indigenous Contractors Association of Nigeria (AICAN) has warned of a possible protest at the All Progressives Congress (APC) national convention in Abuja over delayed payments for government contracts.
Jackson Nwosu, national president of AICAN, spoke in Abuja on Tuesday during a resumed protest by members of the association.
The association is demanding the immediate release of N150 billion owed to its members, citing slow disbursements for verified federal projects executed in 2024 and 2025.
What the contractors are saying
Nwosu said the federal government has so far released only N21 billion to the association’s members, with over N1 trillion still outstanding.
- “For AICAN members, the government has only paid N21 billion between this period; what remains to be paid is over N1 trillion, but what we are demanding immediately is N150 billion,” Nwosu said.
- “Our immediate demand is for the payment to be made within the next two days.”
- He added that the delays could affect members’ participation in the APC national convention.
Seun Babatunde, national secretary of AICAN, said many contractors are facing severe financial strain due to the unpaid contracts.
- “What AICAN has received as an association of contractors is N21 billion as part of the list of payments finalised in December 2025,” Babatunde said.
- “A lot of our members are dying as a result of the debts owed by the federal government. We lost a member to prostate cancer who had over N100 million pending; timely payments could have ensured necessary medical care.”
Backstory
AICAN members have staged multiple protests in Abuja over unpaid contracts executed in 2024 and 2025.
The 2026 appropriation bill allocated N1.7 trillion for verified contractors’ liabilities from 2024 and an additional N100 billion for other local contractors’ debts.
- Despite these provisions, contractors say payments remain slower than expected.
- Government officials have stated that disbursements are subject to verification and compliance checks before release.
- In January 2026, the Ministry of Finance confirmed that N152 billion had been disbursed for verified contracts.
More insights
Former Minister of State for Finance, Doris Uzoka-Anite, emphasised that the verification process is critical for ensuring accountability and transparency in public spending.
- President Bola Tinubu has directed government officials to prioritise payments to indigenous contractors.
- The outstanding payments highlight persistent challenges in executing and settling government contracts, particularly for local contractors heavily reliant on timely disbursements.
- Slow payments have far-reaching implications for business operations, project continuity, and contractor welfare.
What you should know
In December, President Bola Tinubu set up a multi-ministerial committee to resolve the ongoing crisis over unpaid federal contractors, with outstanding payments.
Outstanding contractor debts have been a recurring issue in Nigeria’s public finance management, with similar budgetary provisions made in previous years.
- However, contractors often complain that budgetary allocations do not always translate into actual cash payments.
In February, the Senate urged the Federal Government to revert to the old payment system that allowed Ministries, Departments and Agencies (MDAs) to pay contractors directly.
