Local contractors: We only got N20bn of claimed N152bn payment

Local contractors protesting delayed payments by the Federal Government have challenged claims that N152 billion was recently disbursed to contractors nationwide, insisting that only N20 billion was paid to members of their association.

After meeting with the Minister of State for Finance, Dr. Doris Uzoka-Anite, the contractors’ spokesman, Rotimi Raheem, disclosed that the minister admitted that the government erred by allowing contractors’ payments to remain outstanding for an extended period.

Raheem said that although the Federal Government announced the release of N152 billion to contractors across the country, his association received just N20 billion, most of which were long-approved payments dating back to last year but delayed due to cash shortages on the government’s payment portal.

He explained that the recent disbursement did not represent fresh payments but rather the clearing of backlog obligations already approved before December 31 and awaiting funding.

The contractors’ spokesman further revealed that as of December, the association submitted a consolidated bill of about N150 billion owed to its members. Of that amount, about N48 billion had been paid earlier, with the recent N20 billion bringing total payments to roughly N68 billion, leaving an outstanding balance of about N80 billion.

Raheem questioned the government’s N152 billion figure, stating that while such an amount may have been released nationwide, contractors could not independently verify the claim, as their members—who make up a significant portion of the contractor base—received only a small fraction of the announced sum.

Clarifying the widely referenced N4 billion figure, Raheem said it relates specifically to unpaid portions of the 2024 budget allocated to local contractors. He noted that while about two-thirds of the funds had been released, one-third remains unpaid, fueling the current protests.

He accused the government of deliberately delaying payments to manage foreign exchange pressures, alleging that officials fear releasing funds to local contractors could increase demand for dollars and weaken the naira. He further claimed that while payments to local contractors were stalled, major projects such as the Lagos-Calabar Coastal Road continued to receive funding without hindrance.

Raheem also alleged that contractors suspect their withheld funds may be diverted to political activities ahead of elections.

Despite the grievances, he announced that protests have been temporarily suspended following assurances from the minister that the government’s payment portal would be reopened within one week. He added that President Bola Ahmed Tinubu has directed the Ministry of Finance to clear all outstanding contractor payments on or before March 31, 2026.

According to him, the Minister of State for Finance has also instructed all Ministries, Departments and Agencies, as well as the National Assembly, to submit contractors’ outstanding bills to enable a comprehensive settlement and avert further nationwide protests.

Raheem said the contractors would closely monitor the government’s actions, warning that failure to meet agreed timelines would result in a resumption of protests.