The Federal Government has agreed to pay 35% of N150 billion owed to indigenous contractors upfront, as part of efforts to resolve outstanding payment disputes.
The development was confirmed by the President of the All Indigenous Contractors Association of Nigeria (AICAN), Mr. Jackson Nwosu, following a meeting with the Minister of Finance, Mr. Wale Edun, according to the News Agency of Nigeria (NAN).
The resolution comes after contractors resumed protests demanding immediate payment of their unpaid contracts, signaling progress in addressing long-standing financial obligations.
What they are saying
Mr. Nwosu said the agreement followed direct discussions between AICAN officials and the Minister of Finance, triggered by the resumption of contractors’ protests. The N150 billion owed represents a portion of the total N1.15 trillion debt for capital projects executed across various states, including the Federal Capital Territory, in 2024.
- “Nwosu described the outcome of the meeting as encouraging, expressing optimism that the government would fulfil its commitments.
- “The Federal Government had proposed to pay 35% of the N150 billion being demanded immediately, with the balance to be paid in phases in the coming weeks,” the NAN report read.
- Nwosu described the outcome of the meeting as encouraging, expressing optimism that the government would fulfil its commitments.
The payment arrangement marks a first step toward settling verified obligations owed to indigenous contractors and easing tensions between contractors and the federal government.
More insights
Mr. Nwosu highlighted that contractors were directed to obtain batch numbers from relevant Ministries, Departments, and Agencies (MDAs) to facilitate payments. Those without valid batch numbers would need to secure new warrants, as previous numbers had been updated for the new fiscal year.
- The association emphasized that while the timeline to obtain batch numbers is short, the meeting represents progress toward settling unpaid contracts.
- Contractors are expected to receive the remainder of the N150 billion in phased disbursements in the coming weeks.
This development is seen as a positive step toward ensuring that contractors are compensated for verified contracts under existing agreements.
Get up to speed
Days ago, AICAN warned of possible protests at the All Progressives Congress (APC) national convention in Abuja over delayed payments. Jackson Nwosu spoke in Abuja during a resumed protest by association members, demanding the immediate release of N150 billion owed for verified federal projects executed in 2024 and 2025.
- The association stated that only N21 billion has been released so far, leaving over N1 trillion still outstanding.
- 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 have expressed concern that payments remain slower than expected, while government officials note that disbursements are subject to verification and compliance checks.
In January 2026, the Ministry of Finance confirmed that N152 billion had been disbursed for verified contracts.
What you should know
In December 2025, President Bola Tinubu set up a multi-ministerial committee to resolve the ongoing crisis over unpaid federal contractors.
Outstanding contractor debts have been a recurring issue in Nigeria’s public finance management, despite budgetary provisions in previous years.
Contractors often complain that budgetary allocations do not always translate into actual cash payments.
In February 2026, the Senate urged the Federal Government to revert to the old payment system allowing MDAs to pay contractors directly.
