The All Indigenous Contractors Association of Nigeria (AICAN) has threatened to stage a protest at the All Progressives Congress (APC) national convention in Abuja, demanding immediate payment of over N1 trillion in outstanding federal contracts. While only N21 billion has been disbursed so far, the association is calling for at least N150 billion to be released within days to ease the financial strain on its members.
Jackson Nwosu, national president of AICAN, spoke in Abuja on Tuesday during a resumed protest by members of the association. He said the federal government owes contractors over N1 trillion, though only N21 billion has been released so far. The association is demanding the immediate payment of N150 billion.
“For AICAN members, the government has only paid N21 billion between 2024 and 2025; over N1 trillion remains outstanding. Our immediate demand is for N150 billion to be released within the next two days,” Nwosu said. He warned that the delays could affect members’ participation in the APC national convention.
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Seun Babatunde, national secretary of AICAN, described the severe financial strain many contractors are experiencing due to unpaid contracts. “A lot of our members are suffering as a result of debts owed by the federal government. We even lost a member to prostate cancer who had over N100 million pending. Timely payments could have ensured proper medical care,” he said.
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 disbursements remain slow.
Government officials note that payments are subject to verification and compliance checks. In January 2026, the Ministry of Finance confirmed that N152 billion had been disbursed for verified contracts. Former Minister of State for Finance, Doris Uzoka-Anite, stressed that the verification process is critical to ensuring accountability and transparency in public spending.
President Bola Tinubu has directed government officials to prioritise payments to indigenous contractors. However, the backlog highlights persistent challenges in executing and settling government contracts, particularly for local contractors reliant on timely payments.
Slow disbursements have significant implications for business operations, project continuity, and contractor welfare. In December 2025, President Tinubu set up a multi-ministerial committee to resolve the crisis over unpaid federal contracts. Contractor debts have been a recurring issue in Nigeria’s public finance management, with budgetary allocations often failing to translate into actual cash payments.
In February 2026, the Senate urged the Federal Government to revert to the old payment system that allowed Ministries, Departments, and Agencies (MDAs) to pay contractors directly, aiming to reduce delays and improve accountability.
