Former presidential candidate and ex‑Anambra State Governor Peter Obi has accused the Federal Government of failing to pay local contractors despite Nigeria’s reported revenue growth in 2025.
In a statement issued on X (formerly Twitter), Obi called out the government in response to widespread protests by unpaid contractors across Abuja and other regions.
The development comes after local contractors have voiced growing frustration for several months over the government’s failure to settle certified payments for work they completed on federal projects in 2024 and 2025
What he said
Obi described the situation facing contractors as deeply troubling, particularly for small and medium-sized enterprises that form the backbone of local economies.
He pointed to reports and images of local contractors protesting in multiple regions, noting that many of these businesses have delivered vital public services with the expectation that the government would honour its commitments.
“Most of these contractors are small and medium-sized businesses that are essential to the economy in various regions, comprising ordinary Nigerians who have delivered vital public services with the expectation that the government would honour its commitments,” he said.
Obi said it was even more concerning that these protests were happening after the government had claimed a revenue surplus. He emphasised that a government cannot claim record revenue while leaving thousands of contractors unpaid, highlighting broader issues of transparency in public finance management.
“President Tinubu publicly announced in August that Nigeria had “met and surpassed its revenue target for the year.” With such an impressive record, one would expect increased investment in the economy, specifically in education, healthcare, and programs that alleviate poverty. Yet, the government has still failed to pay contractors.
“A responsible government cannot claim record revenue while simultaneously leaving thousands of contractors unpaid. This contradiction highlights deeper issues related to transparency in our public finance management and governance,” he added
Economic implications
The former governor warned that delayed payments have serious economic repercussions, noting that businesses may shut down, workers could lose their jobs, families may face hardship, and the nation’s overall productive capacity could decline.
He stressed that a strong economy cannot be built when public funds are mismanaged, obligations are ignored, and local businesses are treated as expendable.
Obi urged the government to translate its increased revenue into timely payments for contractors and support the growth of micro, small, and medium-sized enterprises. Meeting obligations to contractors, he argued, is a measure of honesty, competence, and leadership, and a government that fails to fulfil these commitments cannot be trusted to build a nation.
What you should know
Contractors under groups such as the All Indigenous Contractors Association of Nigeria have repeatedly taken to the streets, blocking entrances to the Federal Ministry of Finance and demonstrating at the National Assembly to demand payment of what they describe as long‑overdue obligations
Nairametrics reported that AICAN threatened a nationwide protest starting on November 3 over unpaid government projects. Some projects were even commissioned without settling outstanding obligations
In June, the Federal Government announced plans to clear outstanding payments for contractors who completed verified projects, with the Office of the Accountant General confirming efforts are underway to ensure all properly executed contracts are paid. The Nigerian Senate approved a second extension of the implementation period for the 2024 capital component of the national budget, shifting the deadline from June 30, 2025, to December 31, 2025.
