Contractors Reject N700bn Payment Claim as Fresh Drama Rocks Finance Ministry

(Mr. Taiwo Oyedele. Photo by NALTF)

We processed N700bn payments to 1,240 local contractors Ministry, We have not received any money Contractors

Amid a fresh round of protests by contractors, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has said the ministry approved payments to over 1,240 contractors.

A statement issued by Efe Ovuakporie, Head of Information and Public Relations at the Ministry of Finance, indicated that contractors prioritised in the latest payment batch are those with verified claims of N100 million or below.

The statement noted that the release of funds is intended to offer immediate relief to hundreds of businesses, allowing them to return to project sites, pay workers, settle suppliers, meet financial obligations, and stimulate economic activity nationwide.

According to the ministry, the Federal Government has, over the past few months, processed payments totalling more than N700 billion across various categories of verified obligations owed to local contractors.

Within May alone, approximately N436.6 billion in transactions were processed a development the government described as a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.

The ministry added that by prioritising a large number of smaller contractors rather than concentrating disbursements among a few large beneficiaries, the government is broadening the economic impact of the payments across different sectors and regions.

However, contractors under the umbrella of the All Indigenous Contractors Association of Nigeria (AICAN) resumed protest at the Federal Ministry of Finance Headquarters in Abuja, citing frustration over long-standing arrears tied to 2024 project executions.

Speaking at the protest, AICAN’s National President, Mr. Jackson Nwosu, said approximately 85 per cent of contractors remained unpaid despite earlier assurances from government officials that funds were being processed.

He disclosed that the association had engaged officials of the Ministry of Finance and the Office of the Accountant General, where they were informed that about N40 billion would initially be released to beneficiaries.

Nwosu said contractors had submitted verified payment lists across different categories and had expected funds to reflect in their accounts by the previous Friday, but that did not materialise.

“We were expecting all the payments to drop into beneficiaries’ accounts by Friday, but that did not happen. Only a few persons, from what we have seen, have received payments,” he said.

The association’s National Secretary, Mr. Babatunde Seun, also challenged reports that N700 billion had been paid to contractors, stressing that members had seen no evidence of such disbursement.

In response, Permanent Secretary (Special Duties) at the Ministry of Finance, Mr. Mohammed Sanusi, clarified that approval of funds does not translate to immediate payment, noting that the government was still working through outstanding liabilities.

“Some of these monies have been approved, please get it clear, approval is different from payment, we had a meeting with the Accountant General, we are working on contractors’ payment.

N700 billion has been approved by the Federal Government for payment to the contractors, extra fund of N70 billion has been assigned for payment to this association.

Payment will start dropping any moment from now,” Sanusi assured.