THE federal government has confirmed that it released about N152 billion to indigenous contractors for duly verified projects, as it seeks to calm rising tensions following repeated protests over unpaid claims at the Ministry of Finance in Abuja. However, contractors say they will continue protests until their debt is fully paid.

In a statement issued on Thursday, the Ministry of Finance said the payments were made after the affected contracts successfully passed through all mandatory verification and approval stages stipulated by the law. The ministry said the procedures were necessary to safeguard public funds while promoting transparency and accountability in government spending.

While acknowledging that the verification process had taken time, the ministry noted that the safeguards were designed to ensure only legitimate claims were paid. It conceded, however, that the delays had put financial pressure on contractors and appealed for patience as outstanding issues are addressed through dialogue.

The clarification comes amid renewed demonstrations by local contractors this week, who insisted that the amount paid so far represented only a fraction of what the federal government owed. Protesters say unpaid obligations remained substantial despite multiple engagements with government officials.

Tensions escalated on Monday when demonstrators blocked the entrance to the Ministry of Finance complex, preventing Minister of State for Finance, Dr Doris Uzoka-Anite, from gaining access to the building. The situation briefly deteriorated after security personnel fired a warning shot into the air to disperse the crowd, triggering panic but resulting in no reported injuries.

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The protests are being coordinated by the All Indigenous Contractors Association of Nigeria, whose members argue that the federal government is indebted to them to the tune of more than N4 trillion for completed and certified projects. The group accuses authorities of failing to honour commitments to clear verified claims submitted through official channels.

According to the association, assurances given by government officials since last year have not translated into meaningful payments for many contractors, even where documentation has been submitted, reviewed and approved.

“The government has failed to honour the agreement to pay contractors whose project details had been submitted and verified,” said president of the association, Mr Jackson Nwosu. “Payments that were finalised before the closure of the payment portal at the end of December never reflected in our accounts.”

Government officials, however, insist that progress has been made in reducing the backlog of unpaid bills. Contractors dispute that position, saying only between 30 and 40 percent of outstanding obligations have been settled so far, with payment warrants reportedly stopping around May 2025.

Many indigenous construction firms say the prolonged delays have pushed them into financial distress. Several contractors report borrowing heavily from banks to execute government projects and are now struggling with loan defaults, asset seizures and rising interest costs as payments remain outstanding.

In its statement, the Ministry of Finance said it remains committed to constructive engagement with contractors and urged protesters to adhere to established procedures and respect ministry personnel. The ministry noted that some officials had faced intimidation and harassment during the demonstrations and stressed that such actions could undermine ongoing efforts to resolve the dispute.

It also reiterated its commitment to processing payment requests in a timely and consistent manner, in line with due process requirements.

Contractors, for their part, criticised the security response to the protests, describing it as excessive. “This is a peaceful protest. We are harmless. We are just sitting down peacefully, demanding our money, our payment,” said Fredrick Agada, vice president of the association.

The standoff has drawn attention from the highest levels of government. In December, President Bola Tinubu constituted a multi-ministerial committee to address contractor arrears, which were then estimated at about N1.5 trillion. The committee includes the ministers of finance, budget and economic planning, works and housing, as well as senior officials from budget and revenue agencies.

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The National Assembly has also taken an interest in the matter, with a Senate committee summoning Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, to provide explanations for the persistent delays in settling contractor claims.

In the 2026 budget proposal currently before lawmakers, the Nigerian government has set aside N1.7 trillion specifically for the settlement of contractor debts.

Despite the confirmation of the N152 billion payout, indigenous contractors say their protests will continue until all verified claims are fully settled. They argue that local firms should not be subjected to prolonged delays, particularly when foreign contractors, they claim, receive payments more promptly under similar circumstances.

In December 2025, Economy Post reported that the government established an inter-ministerial committee to address outstanding payments owed to over 2,000 federal government contractors.