The All Indigenous Contractors Association of Nigeria
(AICAN) says the federal government’s delay in clearing debt backlog undermines
economic development.
The local contractors have staged a series of protests at
the finance ministry, the national assembly, and the Federal Capital Territory
Administration (FCTA) over the federal government’s failure to pay for
completed projects.
They had accused the federal government of refusing to
release the funds earmarked in the 2024/2025 budgets.
The Senate and House of Representatives have made several
efforts to secure payment for the contractors without success.
In December 2025, President Bola Tinubu established a
multi-ministerial committee to resolve the outstanding N1.5 trillion debt owed
to the contractors.
Speaking with NAN on Tuesday, Johnson Akinsehinwa, an
executive member of AICAN, said the debt is pushing them into severe financial
distress.
He said prolonged non-payment could worsen job losses and
drive young people into crime.
Akinsehinwa said the delayed payments have a ripple effect
on employment, as contractors who hire large numbers of workers struggle to
meet obligations
“Nigeria’s economy largely depends on government spending.
Apart from oil and a few agricultural products, we are not a major exporting
country. Government releases are what stimulate economic activities,”
Akinsehinwa said.
“When previous budgets are not fully implemented, it becomes
difficult to commence subsequent ones. This creates pressure on the economy and
affects employment generated through government-induced businesses.”
Also speaking, Saidu Jega, a contractor, said only the
government can resolve the crisis, adding that ministries, departments, and
agencies awarded the capital projects that keep many Nigerians employed.
“In executing these contracts, many people are employed,
with several dependants relying on them. Economically, the impact is
far-reaching,” Jega said.
Jega appealed for immediate settlement of outstanding
payments, warning that further delays would compound economic strain and
disrupt businesses.
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