FG Releases ₦152bn for Verified Contracts Amid ₦1.8trn Budget Proposal
By Patience Ikpeme
The Federal Government has confirmed the disbursement of ₦152 billion to contractors for verified projects, signaling a move to address the mounting debt crisis within the nation’s construction sector.
The Federal Ministry of Finance, in a statement released on Thursday, clarified that these payments follow rigorous verification exercises designed to uphold legal standards and safeguard public funds.
According to the Ministry, the release of funds is part of a broader strategy to maintain transparency. “The process of payment for contracts goes through various verification processes in line with extant laws and regulations, to protect taxpayers’ money and ensure accountability and transparency,” the statement noted.
While acknowledging the severe financial strain the current backlog has placed on firms, the Ministry called for “continuous dialogue and engagement for effective resolution of all conflicts.”
To further stabilize the industry, the Federal Government has proposed ₦1.8 trillion in the 2026 Appropriation Bill specifically to settle outstanding payments for capital projects executed during the 2024 fiscal year. Within this allocation, ₦100 billion is earmarked for indigenous contractors to restore confidence among local firms and prevent further business failures.
However, the payment news arrives amid rising tensions between the government and local firms. Last week, the All Indigenous Contractors Association of Nigeria (AICAN) resumed street protests in Abuja, citing “desperation caused by accumulating debt and worsening cash flow pressures.” AICAN President, Mr. Jackson Nwosu, stated that many members are currently facing bank defaults and the seizure of personal assets after borrowing to execute government mandates.
“The government has failed to honor the agreement to pay contractors whose project details had been submitted and verified,” Mr. Nwosu said, disputing official claims regarding the percentage of debt cleared. He argued that total liabilities have now surpassed the ₦4 trillion mark, with many payments finalized before the payment portal closed in December failing to reflect in bank accounts.
In response to these grievances, the Ministry of Finance assured contractors of its “continuous support and openness to constructive dialogue.” The Ministry also urged contractors to “respect the process and the personnel of the Federal Ministry of Finance, who have had to endure different levels of intimidation and harassment.”
The government remains committed to processing all valid payment requests “in line with due process in a timely and consistent manner,” seeking to balance fiscal discipline with the urgent need to revitalize the construction sector ahead of the 2026 fiscal year.
