‘You Pay Foreigners, We Get Dud Cheques’: FG Releases N152bn as Contractors Protest N4trn Debt

ABUJA — The Federal Government has confirmed the release of N152 billion to settle outstanding liabilities to verified contractors this week, a move aimed at quelling the rising wave of protests that have rocked the Ministry of Finance headquarters in Abuja.

However, the disbursement has done little to satisfy the All Indigenous Contractors Association of Nigeria (AICAN), who described the payment as a “drop in the ocean” compared to the N4 trillion debt they claim is owed.

The association has accused the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, of prioritizing the servicing of foreign debts—including Eurobonds and Chinese loans—while treating local infrastructure providers as second-class citizens.

“Foreigners First, Locals Last”

Speaking to nuus.ng during the protest at the Central Business District on Thursday, AICAN President Jackson Nwosu alleged a systematic bias in how the government processes payments.

“We have records showing the government never misses a deadline for foreign debt service,” Nwosu stated. “Between January and August 2025 alone, they promptly paid $2.86 billion to foreign creditors. Yet, when it comes to us who build the roads and bridges here, they give us payment warrants with no cash backing—essentially dud cheques.”

The contractors argue that while the government fears a sovereign default on the international stage, it is indifferent to the “domestic default” that is driving local construction firms into bankruptcy and asset seizure by banks.

Government Defends Process

Reacting to the allegations, the Ministry of Finance clarified that the N152 billion release is part of a structured plan to clear the backlog.

In a statement, the Ministry explained that the delay is not due to a lack of funds but a rigorous “verification and value-for-money” audit introduced to weed out ghost contracts.

“We cannot pay for jobs not done,” the statement read. “The N152 billion released covers all contractors who have successfully passed the new multi-stage verification process. We appeal for patience as we clean up the system we inherited.”

The 2026 Budget Hope

To address the deficit, the Federal Government has earmarked N1.7 trillion in the 2026 Appropriation Act specifically for settling contractor arrears.

Minister of Works, Dave Umahi, who has been caught in the crossfire, assured stakeholders that the new budget provisions would accelerate payments. He urged contractors to return to site, noting that the “Renewed Hope” agenda relies on the completion of critical roads like the Lagos-Calabar Coastal Highway.

The Debt Burden

Data from the Debt Management Office (DMO) reveals the tightrope the government is walking:

• External Debt Service: Nigeria spent 69% of its dollar payments on debt servicing in the first half of 2025.
• Domestic Debt: The local debt stock has ballooned, with the government relying heavily on bond issuances to plug budget deficits.

For the indigenous contractors, however, macroeconomic explanations are no longer acceptable. “Our banks do not listen to grammar,” Nwosu warned. “If they can pay the Chinese, they can pay us.”