The Federal Government has confirmed the payment of N152 billion to contractors for verified contracts, even as indigenous contractors resumed protests in Abuja over alleged unpaid debts estimated to run into trillions of naira.
The confirmation was contained in a statement issued on Thursday by the Federal Ministry of Finance and shared by presidential aide Dada Olusegun on X, formerly Twitter. The development comes amid renewed accusations by contractors that the government has failed to fully settle obligations for completed capital projects, despite repeated assurances and budgetary provisions.
According to the Ministry of Finance, the N152 billion payment followed due verification processes in line with existing financial regulations. The ministry stressed that payments are made only after thorough checks to ensure accountability, transparency and the protection of public funds.
“This is to confirm that the FMF has paid N152bn to contractors for verified contracts,” the statement said. It added that the payment process involves several verification stages in compliance with extant laws and regulations. While acknowledging the financial strain delays have caused contractors, the ministry appealed for continued dialogue and engagement to resolve outstanding issues, insisting that adherence to due process in managing public finances remains non-negotiable.
The clarification came as indigenous contractors on Monday returned to the streets of Abuja, demanding payment of what they estimate to be about N4 trillion owed by the Federal Government for completed 2024 capital projects. The protest marked the latest in a series of demonstrations over unpaid contract sums.
Contractors claim the debts relate to projects they say were fully executed, inspected and certified by relevant government agencies. A similar protest was staged in December 2025, when contractors accused the government of reneging on earlier commitments to settle outstanding payments.
In August 2025, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed that the Federal Government had settled over N2 trillion in 2024 capital expenditure obligations. However, contractors insist that substantial balances remain unpaid, particularly affecting indigenous firms with limited access to credit and working capital.
As part of efforts to ease tensions, the Federal Government has made fresh budgetary provisions to address contractor debts. In the 2026 Appropriation Bill, N100 billion was earmarked under a specific budget line for the settlement of verified and outstanding obligations owed to local contractors.
While contractor groups have welcomed the inclusion, they argue that the N100 billion allocation is grossly inadequate compared to claims of liabilities running into trillions of naira. They warn that prolonged delays in payments could lead to project abandonment, job losses and severe liquidity pressures in the construction and infrastructure sectors.
