The federal government has approved payments to more than 1,240 local contractors nationwide, ending a prolonged standoff over unpaid fees said to top N4.7 trillion.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, granted the approval after the ministry completed a thorough verification and reconciliation process intended to ensure that only properly validated claims were settled. The development was confirmed in a statement by the ministry’s spokesperson, Efe Ovuakporie.
The affected contractors, who operate under the All Indigenous Contractors Association of Nigeria (AICAN), had staged repeated protests at the Federal Ministry of Finance headquarters and the FCT Secretariat, demanding settlement of debts owed for completed and commissioned projects. The most dramatic demonstration came last December, when they blocked the ministry’s main gate for days using a mock coffin bearing the name of the former minister, Mr. Wale Edun, halting all movement in and out of the building.
The contractors had accused the government of issuing payment warrants without cash backing, likening the warrants to worthless cheques. They also faulted the central payment system run by the Office of the Accountant General of the Federation and the Ministry of Finance, pushing instead for a return to earlier payment arrangements. The dispute persisted until Edun was replaced by Oyedele in a minor cabinet reshuffle. According to the ministry, the approved payments deliver immediate liquidity to businesses across the country and underscore the government’s resolve to honor its financial commitments. The funds cover contractors working with various Ministries, Departments and Agencies, with the latestbatch prioritizing those whose verified claims stood at about N100 million or less.
The ministry said the disbursements would allow hundreds of firms to resume work at project sites, pay staff, settle suppliers and meet other obligations. It added that the government had processed payments exceeding N700 billion to local contractors in recent months, including roughly N436.6 billion in May alone.
By spreading the funds across a large pool of smaller contractors rather than concentrating them among a few major beneficiaries, the government said it aimed to broaden the economic impact across sectors and regions. It pledged to maintain fiscal discipline while clearing legitimate obligations in a timely manner, reducing outstanding liabilities and strengthening confidence in public financial management.
