Federal Government confirms ₦152bn payment to verified contractors and proposes ₦1.8trn in the 2026 budget to clear outstanding capital project debts
FG Pays ₦152bn to Contractors, Sets Aside ₦1.8trn to Clear Outstanding Project Debts
The Federal Government has confirmed the disbursement of ₦152 billion to contractors with verified contracts, describing the payments as part of ongoing efforts to uphold transparency, accountability, and fiscal discipline in public spending.
The confirmation was contained in a statement issued on Thursday by the Federal Ministry of Finance, which stressed that all payments followed established verification procedures aimed at safeguarding public funds.
According to the ministry, the disbursement process is firmly guided by existing laws and regulatory frameworks to ensure that only duly verified claims are honoured.
“The process of payment for contracts goes through various verification processes in line with extant laws and regulations, to protect taxpayers’ money and ensure accountability and transparency,” the ministry stated.
While acknowledging the financial strain that delayed payments have placed on contractors, the Federal Government appealed for patience and continued engagement, describing dialogue as the most effective route to resolving outstanding disputes.
“We also plead for continuous dialogue and engagement for effective resolution of all conflicts,” the statement added.
The ministry further assured contractors of its openness to communication, while also condemning alleged intimidation and harassment of public officers involved in payment processing.
“We assure all contractors of our continuous support and openness to constructive dialogue and urge all contractors to respect the process and the personnel of the Federal Ministry of Finance, who have had to endure different levels of intimidation and harassment,” it said.
According to the ministry, outstanding payment requests are still being processed and will be treated in line with due process.
“All verified claims will continue to be handled in a timely and consistent manner,” the statement noted.
₦1.8 Trillion Proposed to Settle Capital Project Debts
In a major fiscal move aimed at restoring confidence in the construction and infrastructure sector, the Federal Government revealed plans to set aside ₦1.8 trillion in the 2026 budget to clear outstanding payments for capital projects executed under the 2024 fiscal year.
Of this amount, ₦100 billion has been earmarked specifically for indigenous contractors, many of whom have raised alarm over prolonged payment delays, rising debts, and worsening liquidity challenges.
The proposed allocation comes amid renewed protests by members of the All Indigenous Contractors Association of Nigeria (AICAN), who recently took to the streets to draw attention to unpaid contracts and mounting financial pressures.
Contractors Cite Loan Defaults, Asset Loss Risks
Speaking on behalf of the protesting contractors, AICAN President, Mr. Jackson Nwosu, said the demonstrations were driven by desperation among members who borrowed heavily to execute government projects.
“The government has failed to honour the agreement to pay contractors whose project details had been submitted and verified,” Nwosu said.
He added that many contractors were pushed to the brink after payments approved before the closure of the payment portal failed to reflect in their accounts.
“Payments finalised before the closure of the payment portal at the end of December never reflected in our accounts,” he lamented.
Industry observers say the proposed ₦1.8 trillion provision, if approved and faithfully implemented, could significantly ease financial pressure in the construction sector, revive stalled projects, and prevent further job losses.
For now, the Federal Government maintains that its payment process remains lawful, transparent, and guided by due diligence, even as contractors continue to press for faster disbursement of outstanding funds. Read More
