Introduction to the Crisis
The All Indigenous Contractors Association of Nigeria (AICAN) has appealed to the Federal Government to clear outstanding payments for contracts executed by its members in 2024. The association said that prolonged delay in payment had plunged many of its members into financial distress, with some reportedly suffering ill health due to pressure from lending institutions.
The Protest and Its Demands
President of AICAN, Mr Jackson Nwosu, made the appeal during the association’s second-day protest at the National Assembly complex in Abuja on Wednesday. Nwosu said the government’s delay to release funds for completed 2024 capital projects had caused serious hardship for indigenous contractors across Ministries, Departments and Agencies (MDAs), including the National Assembly. He said the projects in question were fully executed and verified by relevant authorities, yet contractors had not received any payment since completion more than a year ago.
Details of the Contracts
“These contracts were awarded and executed as part of the 2024 capital budget. We followed all procedures, completed our work, and handed over as required,” he said. He said the association had engaged top government officials, including the Minister of Finance and the Deputy Speaker of the House of Representatives, Mr Benjamin Kalu, to seek resolution. “During our last meeting, it was agreed that 760 billion dollars would be paid as the first installment. In September, a warrant for payment was released but no cash backing followed.”
The Consequences of Delayed Payment
According to him, contractors are frustrated as government agencies keep giving assurances without taking visible action to offset the outstanding liabilities. Nwosu said the association would continue its peaceful protest until the government honours its commitment, adding that members were determined to demand transparency and accountability in the payment process. He also said AICAN would write to international institutions such as the International Monetary Fund (IMF) and the World Bank, as well as some foreign governments, to express its concerns.
Potential Actions
Nwosu further said that the association might mobilise its members, traditional rulers and religious leaders to draw national attention to the plight of indigenous contractors. Similarly, AICAN’s Vice President, Mr Fredrick Agada, said the association had exhausted all formal avenues of engagement, including several meetings with government officials over the past three months. “We have made countless appeals, written letters, and attended meetings, yet nothing has changed. Government officials keep saying the payment will be made soon,” he said.
The Plight of Indigenous Contractors
Agada said contractors had borrowed from multiple financial institutions to execute the projects, and the delay had exposed them to pressure from banks demanding loan repayment. “These loans have accumulated interest. The pressure is enormous. We executed government-approved projects in good faith and now we are struggling to survive because of unpaid debts.” He said the association had no intention of disrupting public peace, but would continue to protest peacefully until the Federal Government fulfilled its financial obligations.
Comparisons with Foreign Contractors
Another member of the association, Mr Johnson Akinsehinwa, said the situation was unfair to indigenous contractors who, he added, were often treated with less priority compared to foreign firms. He said foreign contractors working on major infrastructure projects were paid promptly, while local contractors continued to wait for payment long after completion of their projects. “The Lagos-Calabar Coastal Road is being funded as scheduled, meanwhile, our own projects, completed a year ago, remain unpaid. This is discouraging to local contractors.”
Call to Action
Also, AICAN executive member, Mr John Olateru, said that the completed projects were properly monitored and certified by relevant government agencies before submission of final reports. He questioned why the same agencies that verified the projects had not ensured that the payment process was completed. Olateru appealed to the Federal Government to act swiftly and ease the hardship facing contractors who had committed substantial resources to national development projects. He urged the government to demonstrate fairness and prioritise indigenous contractors in payment schedules, saying such action would build confidence and promote local capacity in the construction sector.
Conclusion
The All Indigenous Contractors Association of Nigeria’s appeal to the Federal Government to clear outstanding payments for contracts executed by its members in 2024 highlights a critical issue affecting the livelihoods of many indigenous contractors. The prolonged delay in payment has caused financial distress, health issues, and pressure from lending institutions. The association’s peaceful protest and intention to seek international intervention underscore the gravity of the situation. It is imperative for the government to address this issue promptly to promote fairness, transparency, and the growth of local contracting firms.
FAQs
- Q: What is the main issue faced by the All Indigenous Contractors Association of Nigeria (AICAN)?
A: The main issue is the prolonged delay in payment for contracts executed by its members in 2024. - Q: How have the delays affected the contractors?
A: The delays have plunged many contractors into financial distress, with some suffering ill health due to pressure from lending institutions. - Q: What actions has AICAN taken to address the issue?
A: AICAN has engaged in peaceful protests, met with government officials, and plans to write to international institutions to express its concerns. - Q: Why do indigenous contractors feel unfairly treated?
A: They feel unfairly treated because they are often paid later than foreign contractors working on similar projects. - Q: What does AICAN hope to achieve with its protests and appeals?
A: AICAN hopes to prompt the government to clear outstanding payments, promote transparency, and prioritize indigenous contractors in payment schedules.
