Members of the All Indigenous Contractors Association of Nigeria (AICAN) assert that ongoing delays in payments for completed Federal Government contracts are detrimental to the nation’s economic advancement.
On Monday, these contractors gathered once again in Abuja to demand the disbursement of approximately N4 trillion, which they claim is owed for projects carried out under the 2024 Federal Government budget.
The protesters blocked the access to the Federal Ministry of Finance, declaring that they would not leave until their overdue payments were addressed.
On Tuesday, the second day of the demonstration, Mr. Johnson Akinsehinwa, a member of AICAN’s National Executive, emphasized that the failure to compensate contractors does not serve the country's interests.
Akinsehinwa cautioned that ongoing denial of payments to contractors could severely damage the economy and lead to significant financial hardships for contractors.
He elaborated that such a scenario could also contribute to rising unemployment and social issues like insecurity and banditry, particularly among unemployed youths.
He pointed out that many of the contractors in protest provide jobs for numerous workers who are directly impacted by the government’s inability to process payments for finalized projects.
"The economy of Nigeria is largely reliant on government expenditures. Besides oil and limited agricultural goods, we are not a major exporting nation. Government spending is what fuels economic activity," he stated.
Akinsehinwa mentioned that delays in the execution of budgets exacerbate the challenges, referencing that the current budget for 2024 had reportedly only seen about 50 percent execution.
“When prior budgets are not fully enacted, it becomes challenging to initiate subsequent ones. This places additional stress on the economy, affecting the job opportunities created through government-related ventures," he stated.
He urged the Federal Government to take immediate action to resolve the issue by clearing outstanding payments, indicating that negotiations are underway to rectify the situation.
Furthermore, he noted that the payment procurement process has been improved, appealing to the government to expedite payments.
Another member of AICAN’s National Executive, Mr. Saidu Jega, remarked that the government is key in addressing this issue.
He pointed out that the ministries, departments, and agencies (MDAs) of the government are responsible for securing capital projects that are vital for employment and livelihoods.
“In fulfilling these contracts, many individuals are employed, and numerous dependants rely on them. The economic repercussions are extensive,” Jega added.
He urged the government to ensure timely payments to contractors to prevent further interruptions in economic activities and to mitigate the deepening hardship across the relevant sectors. (NAN)
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