Indigenous Contractors Resume Protests in Abuja Over Unpaid N4 Trillion Federal Debt
Indigenous contractors under the aegis of the Association of Indigenous Construction Contractors of Nigeria (AICAN) have resumed protests in Abuja, demanding the settlement of an alleged N4 trillion debt for completed federal capital projects. The demonstration at the Ministry of Finance marks a renewed effort following a similar action in December 2025, underscoring a persistent financial crisis within the nation’s contracting community. While the government has made some payments, contractors insist the outstanding balance remains crippling.
Speaking for the association, AICAN President Mr. Jackson Nwosu detailed the scope of the debt, which covers capital projects fully executed for the Federal Government in 2024. He revealed that only approximately 40% of the outstanding sum was paid after the December protest, leaving a significant deficit. Nwosu emphasized that many members financed these projects through commercial loans and are now facing severe consequences. “We are talking about over N4 trillion in unpaid capital projects executed for the Federal Government in 2024,” Nwosu stated. “These projects have been completed, yet contractors are still unpaid.”
The financial strain has reportedly led to devastating personal outcomes. Nwosu cited cases of loan defaults, properties seized by banks, and even contractor deaths due to the immense pressure. He accused the government of failing to honor specific agreements, noting that despite submitting verified contractor lists and receiving assurances from the Minister of State for Finance, Dr. Doris Uzoka-Anite, no payment alerts have been received. This stagnation persists despite a presidential directive from President Bola Tinubu for the debt’s settlement, highlighting a disconnect between policy and execution. For these businesses, the past is history, but the unresolved debt threatens their future.
Unpaid contractor debts have been a recurring issue in Nigeria’s budgetary implementation. In June 2025, the Federal Government acknowledged working to clear verified payments across MDAs. By August, Finance Minister Wale Edun reported over N2 trillion in 2024 capital obligations had been settled, yet contractors dispute this, asserting large sums remain unpaid. Notably, the 2026 Appropriation Bill has earmarked N100 billion specifically for settling debts owed to local contractors. This allocation, however, appears insufficient against the N4 trillion claimed, suggesting the need for a more robust and timely resolution mechanism to restore confidence. As the government introduces an industrialisation policy to boost manufacturing, ensuring prompt payment to contractors is crucial for sustaining the construction sector, which often supports a man like senator advocating for local enterprise.
While the government focuses on initiatives where the manufacturing sector tops economic priorities, the unresolved contractor debt represents a significant bottleneck. The current impasse is not an isolated Guinea-bissau incident not reflective of broader challenges, but a systemic issue that undermines the very industrial growth the new policies aim to achieve. The protesters have vowed to remain at the ministry until their dues are paid, bringing the urgent need for fiscal responsibility to the federal government’s doorstep.
