The Nigerian federal government has agreed to immediately pay 35 percent of the N150 billion owed to indigenous contractors, marking a partial breakthrough in a long-running dispute over unpaid project funds.
The decision follows renewed protests by members of the All Indigenous Contractors Association of Nigeria (AICAN), who had demanded urgent settlement of verified contract debts.
The development was confirmed by Jackson Nwosu, President of the All Indigenous Contractors Association of Nigeria, after a meeting with the Minister of Finance, Wale Edun. According to reports from the News Agency of Nigeria, the agreement entails an upfront payment of 35 percent, with the outstanding balance to be settled in phased disbursements over the coming weeks.
Details of Debt
The N150 billion forms part of a significantly larger N1.15 trillion owed for capital projects executed across various states and the Federal Capital Territory in 2024. Nwosu described the outcome of the discussions as encouraging, noting that contractors are cautiously optimistic the government will follow through on its commitments. The agreement is expected to ease tensions and signal progress in addressing longstanding arrears.
Further clarifications from AICAN indicate that contractors must obtain updated batch numbers from relevant Ministries, Departments, and Agencies (MDAs) to process payments. Those without valid batch numbers will need to secure new warrants, as earlier documentation has been revised for the current fiscal cycle. While the timeline for compliance is tight, the association acknowledged the arrangement as a constructive step toward unlocking payments.
The dispute had escalated in recent days, with AICAN warning of potential disruptions at political events, including the All Progressives Congress convention in Abuja. Contractors had stressed that only about N21 billion had been paid so far, leaving over N1 trillion outstanding.
In the 2026 budget, the government allocated N1.7 trillion to settle verified contractor liabilities from 2024, alongside an additional N100 billion for other local debts. However, officials maintain that disbursements remain contingent on verification processes and fiscal compliance checks. Earlier in January, the Ministry of Finance disclosed that N152 billion had already been released for validated claims.
