Local contractors have vowed to sustain their protests in Abuja despite the Federal Government’s assertion that it has disbursed ₦152 billion for verified contracts, following months of demonstrations at the headquarters of the Federal Ministry of Finance.

In a statement released on Thursday, January 22, the Ministry of Finance explained that the payments were made only after affected projects passed through mandatory verification procedures in line with existing financial regulations. According to the ministry, these steps are necessary to safeguard public funds and uphold transparency and accountability.

While admitting that delays in the process have created financial strain for contractors, the ministry appealed for patience and continuous engagement, stressing that dialogue remains the best path to resolving outstanding issues.

However, contractors involved in the protests argued that the amount released falls far short of what the government owes. On Monday, January 19, demonstrators barricaded the entrance to the finance ministry, preventing the Minister of State for Finance, Doris Uzoka-Anite, from gaining access to the premises.

Tensions rose further when security operatives fired a warning shot into the air to disperse the crowd, triggering panic among protesters. No injuries were reported.Operating under the banner of the All Indigenous Contractors Association of Nigeria, the protesters claimed that the Federal Government is indebted to local firms to the tune of over ₦4 trillion for completed and verified projects. They accused authorities of failing to honour commitments to clear these obligations.

The group maintained that demonstrations would continue until all verified claims are fully settled, insisting that Nigerian contractors deserve equal treatment with their foreign counterparts.

According to the association, assurances from government officials since last year have not resulted in payments for many firms, even after required documentation was submitted and approved.

“The government has not kept its promise to pay contractors whose projects have been verified. Payments that were finalised before the portal closed at the end of December never reached our accounts,” said Jackson Nwosu, president of the association.

Government representatives, however, maintained that notable progress has been achieved in reducing the backlog, a claim the contractors strongly disputed.

Protest leaders said only between 30 and 40 per cent of outstanding debts have been paid, noting that the issuance of payment warrants reportedly stopped in May 2025.

They added that many indigenous firms relied on bank loans to execute government contracts and are now grappling with loan defaults, asset confiscation and rising interest charges due to prolonged payment delays.

The Ministry of Finance reiterated its willingness to engage constructively with stakeholders and urged protesters to observe due process and respect ministry officials, citing incidents of intimidation during the demonstrations. It also reaffirmed its commitment to processing legitimate payment claims promptly and in line with established procedures.

Contractors, on their part, criticised what they described as excessive security measures during the protests. “This is a peaceful protest. We are not violent. We are simply sitting down and asking for what we are owed,” said Fredrick Agada, vice president of the association.

The dispute has attracted attention at the highest levels of government. In December 2025, President Bola Tinubu inaugurated a multi-ministerial committee to address contractor arrears, then estimated at about ₦1.5 trillion. The committee includes ministers overseeing finance, budget and economic planning, and works and housing, along with senior revenue and budget officials.

Lawmakers have also intervened, with a Senate committee inviting the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to account for the prolonged delays.

Meanwhile, the Federal Government has proposed ₦1.7 trillion in its 2026 budget currently before the National Assembly to offset debts owed to contractors