On Wednesday, 5th  November 2025, contractors being owed by the Federal Government descended on the grounds of the National Assembly in protest over their unpaid backlog of contractor debts. Led by their President, Jackson Nwosu, the All Indigenous Contractors Association of Nigeria (AICAN), claimed that the Federal Government owed them N3 trillion “verified debts”.

According to Jackson: “We are here because the Federal Government has failed to pay contractors, and we have brought the case to the parliament to address our grievances. These things are capital projects that had already been executed, and we have been pushing for payment since 2024. They are owing our association over “N3 trillion.” Except for those who are very highly connected, becoming a contractor is one of the riskiest undertakings a person can venture into in Nigeria. Government indebtedness can reduce a robust employer of labour and breadwinner to a beggar. Most of these contractors borrow from the banks or sell/mortgage their properties to do the job, and some wait for years with little result.

Contractors are owed for a number of reasons. Number one is budgetary constraint. There is always a huge gap between what is officially budgeted and actual releases. Contractors are usually trapped in between, more so as the Ministries, Departments and Agencies (MDAs) prioritise recurrent expenditure up to the tune of over 70 per cent. The little that is released to contractors suffers at the altar of corruption, as bureaucrats weaponise excessive red tape against the contractors for selfish gain. Inflation also play a big role, so does political interference. Nigeria is not very business-friendly, and contractors suffer the worst of it.

Failure to pay contractors when due is chiefly responsible for abandoned and substandard projects. A Presidential Projects Assessment Committee report in 2011 revealed 11,866 abandoned federal projects. It is also estimated that between 56,000 and 65,000 projects at all levels of government remain abandoned. Many bridges built in recent years tend to collapse within one or two rainy seasons due to contract abuse.

Our political leaders and decision makers must be made to know of the horrible consequences of prolonged and preventable owing of contractors. Apart from the personal distress these individuals are subjected to, it’s a major source of job losses. Promptly paying contractors enables them to keep their employees and hire more.

Also, prompt payment boosts tax revenue and minimises contract inflation. A good example of how delayed disbursement skyrockets cost is the Abuja-Kaduna Road. It was awarded in 2016 for N47bn but morphed to N120bn in 2023 due to delayed payments to the contractor. This is bad governance! We welcome President Bola Tinubu’s determination to tackle contract debts. He should expedite action. Those who do business with governments deserve their pay.