Lazeera news reports that indigenous contractors in Nigeria are facing a severe crisis due to the Federal Government’s failure to settle payments for completed projects worth up to ₦4 trillion. The contractors, represented by the All Indigenous Contractors Association of Nigeria (AICAN), have been protesting in Abuja, blocking the Federal Ministry of Finance and engaging in tense standoffs with security agencies. The non-payment has led to financial hardship, business collapse, and even deaths among contractors.
The government’s response has been slow, with the 2026 Appropriation Bill allocating ₦1.7 trillion for unpaid contractor liabilities, including ₦100 billion specifically for indigenous contractors. President Bola Ahmed Tinubu has approved the settlement of ₦1.5 trillion owed to local contractors, but contractors remain dissatisfied with the pace of implementation. The National Assembly has intensified oversight, demanding verifiable evidence of payments made.
The crisis has far-reaching implications for Nigeria’s economy and public procurement system, threatening the indigenous contracting sector, local capacity development, and employment generation. The prolonged non-payment has eroded confidence in government contractual obligations, with contractors suffering severe stress-related illnesses and facing asset seizures. The situation remains unresolved, with contractors vowing to continue protests until they receive payment.
