The Federal Government has approved payments to more than 1,240 contractors across various Ministries, Departments and Agencies (MDAs) following months of protests over outstanding debts for completed projects.
The approval was announced on Monday by the Federal Ministry of Finance, which said the payments followed a thorough verification and reconciliation process to confirm valid claims owed to contractors.
According to a statement issued by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, the government has prioritised the settlement of smaller claims, particularly those below N100 million.
The decision comes after members of the All Indigenous Contractors Association of Nigeria (AICAN) staged several demonstrations in Abuja, demanding the payment of over N4 trillion allegedly owed for capital projects executed in 2024.
AICAN President, Jackson Nwosu, had accused the government of failing to pay contractors despite the completion and delivery of numerous projects across the country.
He warned that the prolonged delay in payments was pushing many contractors into financial distress, noting that several members financed projects through bank loans and were struggling to meet repayment obligations.
Nwosu also claimed that only about 40 per cent of the outstanding debt had been settled following an earlier protest in December 2025, leaving a substantial balance unpaid.
The contractors further alleged that repeated assurances from government officials and interventions by relevant authorities had failed to secure full payment, while some businesses reportedly collapsed due to the delays.
The latest approval is expected to bring relief to affected contractors, although the government has yet to disclose the total amount to be paid or whether larger outstanding claims will be addressed in subsequent phases.
