Contractors under the All Indigenous Contractors Association of Nigeria (AICAN) on Monday gathered at the Federal Ministry of Finance in Abuja, seeking clarification over reports that the Federal Government had released N700 billion to contractors, including their members.
The association said the amount in question forms part of outstanding payments from an estimated N1 trillion owed for capital projects executed in 2024, noting that many members were yet to receive payments in spite of earlier assurances.
Speaking during the engagement, AICAN President, Mr Jackson Nwosu, said about 85 per cent of contractors were still awaiting payment.
He said the association had previously met with officials of the Ministry of Finance and the Office of the Accountant-General of the Federation, where a partial release of funds was discussed.
According to him, members had expected payments to reflect in their accounts, but only a few had reportedly received funds.
“We were expecting payments to begin reflecting, but that has not happened for most members,” he said.
The association also expressed concern over reports of a N700 billion payment, insisting that many contractors had not seen evidence of such disbursement.
It maintained that contractors who executed projects should be fully settled.
The association’s National Secretary, Mr Babatunde Seun, also questioned the reports, saying members had not seen evidence of the alleged payment.
“We came out this morning because of the news that N700 billion had been approved. We have submitted claims running into billions and many contractors have still not been paid. That is why we are here,” he said.
Seun rejected proposals for partial payments, insisting that contractors who completed projects under previous budget cycles should be fully settled.
Responding, the Permanent Secretary, Special Duties in the Ministry of Finance, Mr Mohammed Sanusi, said the funds had been approved but were not yet available for immediate disbursement.
He said government was addressing other financial obligations and working to settle verified liabilities.
“Some of these monies have been approved. Approval is different from payment. We met with the Accountant-General and we are working on contractors’ payments.
“N700 billion has been approved by the Federal Government for payment to contractors, and an additional N70 billion has been assigned for this association.
“Payment will start dropping any moment from now,” he said.
