Contractors protest at N/Assembly for second day

Indigenous contractors continued their protest at the National Assembly, Wednesday lamenting what they termed the failure of the federal government to pay them for projects executed since 2024.  The contractors, under the aegis of the All Indigenous Contractors Association of Nigeria (AICAN) blocked the main entrance to the National Assembly, forcing lawmakers, staff and visitors […]

Indigenous contractors continued their protest at the National Assembly, Wednesday lamenting what they termed the failure of the federal government to pay them for projects executed since 2024. 

The contractors, under the aegis of the All Indigenous Contractors Association of Nigeria (AICAN) blocked the main entrance to the National Assembly, forcing lawmakers, staff and visitors to seek alternate route to access the National Assembly Complex.

Many staff and visitors to the National Assembly were forced to walk long distances to access the parliament’s building as the usual shuttle buses that convey them inside could not have access through the entrance due to the demonstration.

The contractors who spoke to Daily Trust, lamented that the prolonged non-payment by the federal government had left many of their members bankrupt; forcing them to sell their houses with others sick, and in some cases, dead.

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The protesters, who blocked the National Assembly complex for two consecutive days, insisted they would remain on the streets until their debts are paid.

They accused the government of neglecting them while paying for selected projects and foreign firms.

Speaking to Daily Trust at the protest ground, the National President of AICAN, Jackson Ifeanyi Nwosu, said the government’s failure to pay contractors for capital projects executed since 2024, was unfortunate.

“We didn’t just start this protest yesterday. We started months ago. This government owes us and they promised to pay. Since then, it’s been promises and failure, promises and failure. We can’t continue like this. We can’t feed our families anymore,” Nwosu said.

He explained that the contractors executed several infrastructure projects across the country, including schools, roads, boreholes, markets, and ICT centres, but have not been paid.

“For about a year now, we’ve not received payment. Some of these projects include classroom blocks, road networks, boreholes, power projects, and water schemes. The government has refused to release the funds meant for 2024 capital projects,” he said.

Nwosu noted that although the Minister of Finance, Wale Edun confirmed that the government owes about N2 trillion to contractors, no payment has been made.

“Our members are over 10,000. Some have projects worth N8 billion, N20 billion, N500 million. Many of us can’t even feed our families. We can’t transport ourselves from one point to another. These are people who used to be employers of labour, now reduced to beggars,” he lamented.

He said several meetings had been held with government officials, including the Deputy Speaker of the House of Representatives, Benjamin Okezie Kalu; the Minister of Finance, and the Accountant-General, where they were assured that a warrant of N760 billion had been issued for payment.

“As we speak, that warrant has not been cash-backed. We will remain on the streets until all contractors are paid. In the history of this country, no president has had a budget he couldn’t fund. This is the first time we are seeing such,” he added.

“We built projects but can’t pay our rent. We will remain here as long as they refuse to pay.

“We are not asking for favour. We are asking for what we have worked for. Our members are dying, and the government must act now”, Nwosu said.

Another contractor, Engineer John Olateru, said the delay in payment has crippled his business and pushed many into debt.

“I’m a civil engineer, and I’ve handled three different projects for the federal government. I constructed a road for NDDC in Yenagoa, Bayelsa State, completed in December 2018. The project was commissioned with pomp and pageantry; but up till now, NDDC has not paid me one naira out of N361 million,” he said.

Olateru said the problem extends to more recent projects. “All the jobs we did for 2024 capital projects, not one kobo has been paid. I renovated King’s College in Lagos, and also worked on road infrastructure at Federal Government College, Ogbomosho. I finished both before Easter this year. We are now in November 2025, and nothing has been paid,” he said.

According to him, many contractors borrowed heavily to execute projects after being awarded contracts without mobilisation funds.

“Most of us borrowed money at 10% interest monthly. Some members are dead. Some are bedridden. Some can’t maintain offices anymore. How do you sustain your business without payment? It’s not possible,” he stated.

He accused the government of double standards, saying while indigenous contractors are left to suffer; foreign companies and politically connected firms are being paid.

“We met the Deputy Speaker, Accountant-General, and Minister of Finance on September 22. They promised to release a N760 billion warrant that week, but up till now, there is no cash backing. Agencies are ready to pay, but everything boils down to the Minister of Finance and the President,” Olateru said.

Also speaking, the General Secretary of AICAN, Babatunde Seun, said the group’s patience had been stretched to the limit.

“This is day two of our protest. We came to the National Assembly to make our voices heard. On September 4, we were called off the streets by Honourable Kalu, and we had a meeting with him, the Minister of Finance, and the Accountant-General. They promised that once a warrant of N760 billion was done, it would be cash-backed. The warrant was issued, but no cash backing,” he said.

He explained that a follow-up meeting scheduled for October 5 did not hold, and since then, no official communication had been made.

He appealed to the president to intervene immediately, saying, “We are family men and women. We employ Nigerians; children of soldiers, police, and civil servants. We pay taxes. We support orphanages. Now, we can’t even pay our bills. If this government can’t pay for the 2024 projects, how will it run the 2025 budget? We are poor in our pockets but rich in government hands.”

For her part, Mrs. Ngozi Obiekwe, said, “We did our jobs the way they wanted, but they have refused to pay us. I personally borrowed money to execute my project. Most nights, I can’t sleep. When my phone rings, my heart jumps, thinking it’s my creditor,” she said.

Obiekwe narrated how she struggled to pay off part of her debt while watching her colleagues lose everything.

 “There’s a member who lost his house. He used to be a landlord; now he’s a tenant because of the loan he took to complete a government project. We have never had it this bad before,” she said.

According to her, many contractors now live in poverty despite being owed millions. 

The protest, which disrupted legislative activities, led to the suspension of plenary in the House of Representatives for a week, but the decision was later reversed. 

The same contractors had in September protested at the Federal Ministry of Finance headquarters in Abuja, blocking access to the complex and disrupting vehicular activities around the area.

Speaking during the September protest, Nwosu lamented that despite government claims that payments for the 2024 capital projects had been made, less than one per cent of indigenous contractors had been paid.

“We are dying. Financial institutions are on our necks every day because the government claims to have paid us, but they haven’t”, he said.

They owe us for 2024 capital projects. Out of more than 15,000 contractors, they have only paid about seven. Yet, they go around claiming all payments have been settled. If it was true, we wouldn’t be on the streets”, he said.

When contacted for reaction, the Director Press at the Federal Ministry of Finance, Mohammed Manga, told Daily Trust that he had forwarded enquiries to the appropriate department for necessary action.

However, he was yet to respond to the enquiries as at the time of filing this report last night.

Similarly, the Director of Press at the Accountant General’s office, Bawa Mokwa did not respond to messages sent to him.

Meanwhile, on September 5, the Minister of Finance, Wale Edun, had assured indigenous contractors that payments for executed projects will begin next week.

According to a statement by Levinus Nwabughiogu, Chief Press Secretary to Benjamin Kalu, Deputy Speaker of the House of Representatives, the minister spoke after a meeting convened by the lawmaker in Abuja to address the grievances of the contractors.

Edun said the federal government had adopted a structured process to address outstanding obligations to contractors.

Shamseldeen Ogunjimi, the Accountant-General of the federation, corroborated Edun’s statement, saying the payment process had commenced.

But contrary to the assurance given by the government officials, the protesting contractors said they were yet to be paid their outstanding debts.

Low capital budget implementation, releases

Daily Trust reports that there has been disquiet over the poor funding and releases for capital projects under the President Bola Ahmed Tinubu’s administration.

Earlier this year, the National Assembly expressed concerns over the wide gap between recurrent and capital expenditures in the 2024 budget, citing the low level of funds’ releases for capital projects as a major obstacle to achieving tangible development.

At a joint session between the Chairmen of Senate and House Committees on Appropriations and the Presidential Economic Team to review the 2025 Appropriation Bill, Senator Solomon Adeola and Abubakar Bichi called for increased funding for capital projects in the ongoing 2024 budget.

They argued that capital projects were the most direct way for Nigerians to benefit from government activities, as recurrent expenditures primarily serve a limited segment of the population.

The 2024 fiscal year, initially pegged at N28.7tn, was revised upward to N35.06tn to accommodate N3.2tn for “Renewed Hope” infrastructure projects and N3tn for additional recurrent expenditures.

These adjustments were approved following a request by President Bola Tinubu to address critical infrastructure needs and operational demands.

Despite the expansion, the 2024 budget performance has been underwhelming, according to a report by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

The report revealed that while recurrent expenditures achieved a 43% implementation rate, capital expenditures lagged significantly at only 25%.

Senator Adeola, representing Ogun West Senatorial District, called for a drastic shift in the budget structure, advocating for a 60:40 ratio between recurrent and capital expenditures, compared to the current 80:20 ratio.

“Capital releases to MDAs drive economic activities and development across the nation. The non-release of funds for capital projects is a significant factor in the poor performance of the 2024 budget so far. Funds must be released to avoid abandoned projects and ensure the success of the Renewed Hope Agenda,” Adeola stated.

Bichi echoed these sentiments, highlighting the disproportionate impact of recurrent expenditures.

“Most recurrent expenditure items, which have achieved near 100% implementation, directly benefit only about 10% of the population. In contrast, capital projects in healthcare, education, infrastructure, and energy directly benefit the majority of over 200 million Nigerians,” he said.

The finance minister, Edun, acknowledged the backlog of capital releases awaiting funding but cautioned against reverting to unsustainable spending practices, referencing recent fiscal crises in France and Germany as cautionary tales.

The Minister of Budget and National Planning, Atiku Bagudu, attributed the high recurrent expenditures to Nigeria’s developmental challenges and legacy issues, such as insecurity, which continue to strain resources.

FG yet to release 2024 budget performance

Daily Trust reports that the federal government is yet to release the budget performance for the 2024 appropriation act less than two months to the end of the extended implementation cycle of the budget.

In September, the federal government said it would release the budget performance report for 2024 by the end of September of the month alongside outstanding reports for the first and second quarters of 2025.

In a statement released, the Budget Office of the Federation admitted that the publication of Budget Implementation Reports had been delayed since the second quarter of 2024, but assured Nigerians that the setback was temporary and would not derail its commitment to transparency and accountability.

The office explained that the delays were caused by verification missions and reconciliations with implementing agencies, as well as Nigeria’s transition to a new extended fiscal framework.

“The delay should not be seen as backsliding, but as a reflection of the care taken to ensure accuracy and credibility in Nigeria’s fiscal reporting during an exceptional budget cycle,” the statement noted.

According to the Budget Office, issuing reports on the old budget cycle would have created confusion once policy discussions began pointing towards an extended horizon.

“Issuing reports on the old cycle, only to have them overtaken by a revised implementation framework, would have created conflicting datasets and misled stakeholders,” it said.

No more contracts without cash-backing – Edun

Following the issues trailing the implementation of capital budgets, the federal government had some time ago announced a major policy shift to ensure that all contracts awarded by Ministries, Departments, and Agencies (MDAs) are backed by available funds before any legal commitments are made.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this in Abuja in August during the Stakeholders’ Engagement on the Implementation of the 2025 Capital Budget and Related Issues.

According to Edun, the issuance of Warrants and Authority to Incur Expenditure (AIEs) will now precede any contract award or financial obligation by MDAs. “This is to serve as evidence of funds available for the award of contracts or processing of payments for ongoing and completed contracts,” he said. 

“Prior to legal commitment, we spend what we have earned. For the avoidance of doubt, we are to ensure that no letter of award is issued, contract signed, or any financial obligation entered into unless corresponding Warrants and AIEs covering the full or committed portion have been duly released.”

The minister stressed that the government’s aim was to restore fiscal discipline and avoid the distortions that previously undermined public spending. “The past is the past. We are where we are. Government will meet its obligations. Nonetheless, we are here to make things better, to improve as we go forward,” he stated.

Edun revealed that the administration had removed distortions costing the economy about 5 per cent of GDP, leading to increased revenue inflows. “The funds are flowing, and we have seen from the figures that they are flowing into the federation account as well as other avenues of government revenue. The president has done his part. The critical thing is that the extra resources are channelled diligently, skilfully, and with full responsibility into areas that drive the economy,” he said.

He added that the policy focus is on investment rather than consumption. “They are channelled into investment in equipment and facilities that increase productivity, drive the economy, create jobs, and lift people out of poverty by the millions. That’s the aim and policy of Mr. President and his entire administration,” Edun said.

Lawmakers demand full implementation of outstanding 2024, 2025 projects

Meanwhile, members of the House of Representatives have called on the federal government to ensure full implementation of the outstanding 2024 and 2025 projects without further delay.

Daily Trust learnt that during a closed-door session held on Wednesday at the National Assembly, lawmakers, while expressing worry over the poor funding of the national budgets, demanded full implementation of the capital component of the 2024 Appropriation Act.

While expressing displeasure over the protest by the indigenous contractors, the lawmakers called for immediate release of funds for completed projects.

They further urged the Executive to ensure prompt commencement of the capital implementation of the 2025 Appropriation Act once approved, to avoid project delays and stalled development initiatives.

Daily Trust reports that the House had on Tuesday given a seven-day ultimatum to the Minister of Finance, Wale Edun; the Minister of Budget, Atiku Bagudu and the Accountant-General of the Federation, Shamsedeen Ogunjimi to pay the indigenous contractors their debt.

A lawmaker who spoke to Daily Trust yesterday, said members were concerned about the slow implementation of capital projects by the federal government, saying, the development is affecting the execution of their constituency projects.

He said less than two months to the end of the year; the government is still struggling to settle the debts of the 2024 capital project, wondering what will become the fate of the 2025 budget.

The lawmaker lamented that the poor funding of capital projects would have negative impacts on members, especially as the country gears up for the next election cycle.

He said the number of constituency projects lawmakers are able to attract for their constituents go a long way in bolstering the chances of lawmakers being re-elected.

The lawmaker who is a member of the ruling party, said, the president must act fast by giving attention to capital projects across the country.

Speaking on the challenges facing the implementation of the budget, a member of the House from Osun State, Oluwole Oke, said the release of more funds to the states and local government also constitute part of the problem.

He said: “President Bola Ahmed Tinubu, unlike other presidents who make use of funds in Federation accounts to fund FGN budgets, has released all the accrued revenue to other sub tiers of governments. States and local governments now have more money than FGN.

“The way out of this log jam is for the FGN Budget office to go back to the drawing table and face the realities of the day. They do not need to impress any person by telling us half-truths. 

If we don’t have enough for development, we can borrow. All loop holes must be blocked. We should also go after our debtors and collect our money. We can divest from unproductive or unprofitable ventures”, Oke said.

Tinubu slashed constituency projects from N1bn to N500m – Gagdi

Meanwhile, a member of the House of Representatives, Yusuf Gagdi, representing Pankshin/Kanke/Kanam Federal Constituency of Plateau State, has expressed concern over the government’s failure to release any funds for capital projects in the 2025 fiscal year, barely two months before the year ends.

Speaking during a town hall meeting with his constituents in Plateau State, Gagdi lamented that not a single kobo had been released for capital projects since the passage of the 2025 Appropriation Act last December.

He explained that although President Bola Tinubu had initially approved an intervention of N1billion worth of constituency projects for each member of the House of Representatives, the allocation had recently been cut by half due to funding challenges.

“Our legislators are here, and we have peculiarity. There is no federal lawmaker in Abuja who is directly given constituency funds in cash. Instead, in each state, lawmakers are allocated an envelope worth N1 billion to propose project ideas.

“For instance, in Kano, the N1 billion envelope is shared among all 27 federal lawmakers from the state for constituency projects,” Gagdi said.

 

The lawmaker clarified that contrary to public perception, no federal lawmaker in Abuja receives constituency project funds in cash. Rather, each is allocated an envelope for project proposals worth a specified amount, depending on the number of lawmakers from their state.

“In Plateau, for example, we have eight federal lawmakers. If N1 billion is shared among them, each lawmaker will receive N125 million for constituency projects. As a legislator, I am required to submit project proposals worth N125 million, and the same applies to Hon. Maje and others.

 

“However, in states with a higher number of legislators, such as Kano, the individual allocation is smaller — each lawmaker may receive between N25 million and N30 million for projects. When this intervention is released, it is used to fund constituency projects. Any additional projects seen within the constituency are usually the result of lobbying for more funding and interventions.”

Gagdi stressed that the delayed release of funds has stalled development projects across the country, leaving both legislators and citizens frustrated.

“Since the passage of the 2025 Appropriation Act last December, no capital project funds have been released to either the Executive or the Legislature, even though there are only two months left before the end of the 2025 fiscal year.

“For me and all other federal lawmakers in the state, we have not received any constituency project funds yet. It was only last week that the President informed the Speaker of the House of Representatives that the 2025 budget could not be fully funded. Consequently, the President reduced our constituency intervention allocation from N1 billion to N500 million,” the lawmaker added.

FG exhibiting poor budgeting practice, fiscal irresponsibility – Expert

Reacting to the issue, a development expert and the Executive Director of the Centre for Fiscal Transparency and Public Integrity (CEFTPI), Umar Yakubu, described the federal government’s policy of funding 2024 projects with 2025 revenue as poor budgeting practice.

“Fiscal transparency comes with responsibility and accuracy. However, when a government uses future revenue to fund a past budget, it shows there is no proper planning or transparency,” he said.

Yakubu said borrowing income meant for one year to finance another budget cycle reflects a high level of fiscal irresponsibility and weak budget discipline.

“When you don’t achieve your target, you cannot take revenue from 2025 to fund 2024,” he said.

He warned that if the practice continues, it will undermine accountability, making it difficult for civil society organisations (CSOs) to monitor the implementation of the 2024 budget, and could negatively affect subsequent budgets.

Yakubu also criticised the National Assembly for allowing the practice to persist, attributing it to legislative recklessness.

Nigeria’s many budgets

Nigeria has witnessed the running of multiple budgets under the present administration.

As of November 2025, the federal government is still implementing the capital component of the 2024 Appropriation Act, whose lifespan was extended by the National Assembly to December 31, 2025, while also running the 2025 budget.

In July 2024, the National Assembly approved a request by President Bola Tinubu to extend the implementation of the 2023 capital budget to December 31, 2024, even though the 2024 Appropriation Act was already in effect at the time.

Barely four months later, the lawmakers were again approached with another proposal to extend the 2024 budget’s capital component to cover the first and second quarters of 2025. The argument was that it would allow ongoing capital projects to be executed.

The Senate and House of Representatives quickly granted the request.

“This is necessary to ensure continuity and completion of critical infrastructure projects,” said Senator Solomon Adeola, Chairman of the Senate Committee on Appropriations. “We cannot abandon projects because the fiscal year ended.”