The federal government has cleared over 1,240 contractors with verified claims under N100 million, marking a major step in addressing the government’s payment backlog to indigenous construction firms. The clearance follows sustained protests by the All Indigenous Contractors Association of Nigeria (AICAN) over an estimated debt backlog for capital projects executed during recent fiscal years.
The Federal Ministry of Finance maintains that payments were only authorised following a rigorous multi-stage verification process to ensure claims were genuine and properly documented. The clearance exercise includes contractors across various sectors including infrastructure development, housing projects,道路 construction, water supply systems, and electricity generation facilities.
Minister of State for Finance Dr. Doris Uzoka Anite confirmed the disbursement in a statement issued after sustained protests at the Federal Ministry of Finance headquarters by indigenous firms. The payment aims to address a portion of the estimated debt backlog claimed by AICAN for capital projects executed during the 2024 fiscal year, with the government working to clear verified claims systematically.
The federal government budgeted N1.7 trillion for “2024 Outstanding Contractor’s Liabilities” and an additional N100 billion earmarked for “Payment of Local Contractors’ Debts/Other Liabilities” to address the backlog. This funding represents the government’s commitment to supporting indigenous contractors and maintaining confidence in the construction industry.
The clearance of over 1,240 contractors is expected to revive stalled projects across the country and improve the financial position of many indigenous construction firms that had been struggling with delayed payments. The government has assured that the verification and payment process will continue for remaining verified claims in subsequent phases.
Contractors who receive payments under this initiative are expected to complete their projects and deliver quality infrastructure to the public, helping to address Nigeria’s development needs. The federal government has urged contractors to maintain transparency and accountability in how the funds are used for project execution.
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