The Federal Government has confirmed that it has disbursed N152 billion to contractors of verified contracts.

The payment the federal government said followed established verification procedures designed to safeguard public funds and maintain accountability in government spending.

In a statement, the Federal Ministry of Finance said the payment process is guided by existing laws and regulations to ensure transparency and protect taxpayers’ money. “The process of payment for contracts goes through various verification processes in line with extant laws and regulations, to protect taxpayers’ money and ensure accountability and transparency,” the ministry said.

Acknowledging the financial pressure delays have placed on contractors, the ministry appealed for continued engagement as a pathway to resolving outstanding issues. “We also plead for continuous dialogue and engagement for effective resolution of all conflicts,” the statement added.

The ministry assured contractors of its willingness to maintain open communication, urging them to respect the procedures and staff involved in handling payment requests. “We assure all contractors of our continuous support and openness to constructive dialogue and urge all contractors to respect the process and the personnel of the Federal Ministry of Finance, who have had to endure different levels of intimidation and harassment,” it said.

It stated that all outstanding payment requests would continue to be processed in line with due process and handled “in a timely and consistent manner.”

As part of broader efforts to address the contractors plight and restore confidence among local firms, the Federal Government has proposed setting aside N1.8 trillion in the 2026 budget to clear outstanding payments for capital projects executed under the 2024 fiscal year.

Of this amount, N100 billion has been allocated specifically for indigenous contractors, many of whom have raised concerns over prolonged delays and worsening financial conditions.

The proposed budgetary provision follows recent protests by members of the All Indigenous Contractors Association of Nigeria (AICAN), who returned to the streets to draw attention to mounting debts and liquidity challenges within the sector.

AICAN President, Mr Jackson Nwosu, said the protests were driven by what he described as growing desperation among contractors facing loan defaults and the risk of losing personal assets after borrowing to carry out government projects.

“The government has failed to honour the agreement to pay contractors whose project details had been submitted and verified. Payments finalised before the closure of the payment portal at the end of December never reflected in our accounts,” he said.

Nwosu also challenged official claims that the bulk of the debt had been settled, arguing that only a fraction of the outstanding obligations had been addressed. He said, “They claim 80 percent of the debt has been cleared, but in reality only 30 to 40 percent of payments have been processed.”

According to him, payment warrants appeared to have stopped around May 2025, even as contractors continued work on ongoing projects, leading to a sharp rise in liabilities. He estimated that total outstanding obligations have now exceeded ₦4 trillion.