Indigenous contractors bemoan unpaid debts by FG, say members dying from hardship

The All Indigenous Contractors Association of Nigeria (AICAN) has urged the Federal Government to urgently address outstanding payments owed local contractors for completed projects.

The association made the call on Saturday in Abuja at the burial of one of its members, Alhaji Mohammed Inusa, who died after battling an illness for about three months.

Mr Jackson Nwosu, National President of AICAN, said the deceased had completed projects worth billions of naira but was still owed more than N1 billion.

Nwosu alleged that the unpaid funds made it difficult for the contractor to finance his medical treatment, including a required surgery.

He appealed to the Federal Government to prioritise payment of verified debts owed indigenous contractors to ease their financial difficulties.

Nuhu Inusa, son of the deceased, said his father’s health began to deteriorate about three months before his death.

He attributed the worsening condition partly to delays in payment for work his father had executed as a contractor.

According to him, the family contacted relevant authorities and sought assistance from their representative, but without success.

“Had the money been paid on time, I believe, though I am not God, that he might still have been alive by now,” he said.

Inusa said his father eventually died from a tumour in his spine.

Also, Mr Rotimi Raheem, National Publicity Secretary of AICAN, told the News Agency of Nigeria (NAN) that the association had lost several members amid difficulties accessing payment for completed projects.

Raheem said the association contributed towards Inusa’s medical expenses but could not raise enough because many members were also facing financial challenges.

He said some contractors had remained unpaid for projects completed over the past two years, allegedly because the projects lacked cash backing.

The Federal Government, however, has said it is taking steps to clear verified obligations owed local contractors.

NAN recalls that the Federal Ministry of Finance had announced approval of payments to more than 1,240 contractors following verification and reconciliation of outstanding claims.

The ministry said more than N700 billion in verified obligations to local contractors had been processed, including about N436.6 billion in May.

It said contractors with verified claims of N100 million or less were prioritised in the latest batch, as part of efforts to address long-standing obligations and inject liquidity into businesses.

The ministry had also engaged AICAN in May, with the Finance Minister, Mr Taiwo Oyedele, assuring contractors that the government was working with relevant institutions to reconcile outstanding claims and establish a sustainable payment structure.

However, AICAN later protested at the Finance Ministry, disputing claims that approved funds had translated into payments to many of its members.

The association said it was still owed substantial sums, while a Finance Ministry official clarified that approval of funds was different from actual payment and that disbursements were being processed.