10 Months After: Indigenous Contractors Lament Delayed Payment
Indigenous contractors demand payment for executed projects, threaten protest
Godswill Michael
Nigerian Indigenous contractors under the umbrella of the All Indigenous Contractors Association of Nigeria (AICAN) have accused the President Bola Tinubu-led government of impoverishing local contractors through its continued delay in paying for 2024 executed projects, alleging that the government has abandoned its obligations despite commissioning the completed works.
At a press conference in Abuja on Tuesday, the contractors decried what they described as “grave injustice,” lamenting that many of their members have died while others are battling debts and bankruptcy due to the government’s failure to honour its contractual agreements.
According to the association’s National President, Jackson Ifeanyi, “Despite our patriotic commitment to supporting national development by executing 2024 capital projects which many of our members undertook with borrowed funds trusting in the Government’s promise of payment upon completion.
“Unfortunately, the Government has failed to honour these contractual agreements but commissioned these projects to look good in the eyes of the public without paying the indigenous contractors who made them possible. This is grave injustice.”
He said the government’s failure to release the outstanding payments has left many local contractors unable to repay loans, forcing some to shut down their businesses and lay off workers.
“This current administration of President Bola Ahmed Tinubu has bankrupted our Local Contractors through non-payments of 2024 Capital Projects executed so far,” he stated.
Ifeanyi warned that if the government fails to pay all outstanding entitlements before the end of the week, AICAN members will embark on continuous demonstrations across the Federal Capital Territory to protest what they termed deliberate marginalisation.
The group also expressed disappointment at the National Assembly and other oversight bodies for turning a blind eye to their plight, despite the release of a warrant of N760 billion without cash backing through the Office of the Accountant General of the Federation for over two months.
“This Government continues to lure contractors into projects it has no intention of funding while prioritising projects that serve the personal interests of certain officials. Indigenous contractors can no longer endure this unfair treatment which has put us under debt burden and crippled our well-being in all ramifications,” Ifeanyi said.
AICAN’s Vice President, Fredrick Agada, also accused the government of favouring foreign firms over local contractors. “While foreign contractors are cashing out, our members are dying in penury. We will do all that is necessary to fight for our rights,” Agada stated.
For many indigenous contractors, the situation has gone beyond financial frustration to human tragedy.
“Many of our members have lost their lives, and those alive are barely surviving while their money is stuck with the government unpaid,” one of the members lamented.
Among the affected contractors is Abu Joseph, a person with disability, who said the delayed payment had forced him to suspend operations and lay off over 100 staff members, including persons with disabilities.
This is coming at a time when the government claims to protect the rights and empower persons with disabilities.
“Why will the government listen to the other unions in the economy and neglect the local contractors?” another member queried.
The association warned that continued neglect of indigenous contractors could worsen Nigeria’s unemployment crisis, as more firms are pushed out of business.
This development comes amid mounting public concern over contract racketeering and political interference in Nigeria’s procurement system.
In August 2025, stakeholders in the electricity sector had called on the Federal Government to establish an investigative panel to probe public servants and political appointees allegedly influencing contract awards for personal gain.
According to a communiqué obtained by Datavox Media, the stakeholders stated, “The federal government should set up an investigative panel on contract racketeering to fish out and punish public servants and serving political appointees who influence the award of government contracts to companies they have an interest in.”
They warned that such practices amount to conflict of interest, undermine transparency, and jeopardize service delivery across sectors.
For AICAN, the government’s silence over their demands is deepening the economic hardship faced by indigenous contractors who form a vital part of Nigeria’s infrastructure development chain.
The association called on civil society organisations, the media, and international partners to stand with them in their demand for payments, transparency, accountability, and fairness in project financing and execution.
As the contractors’ patience wears thin, many fear that unless urgent action is taken, the very people once relied upon to build the nation’s roads, schools, and hospitals may soon be unable to sustain their own lives.
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