The continued protest by members of the All Indigenous Contractors Association of Nigeria (AICAN) at the National Assembly exposes growing concerns about the Nigerian government’s poor fiscal management and failure to honour contractual obligations.
Development Diaries reports that the contractors have blocked the main entrance to the National Assembly for two days, forcing lawmakers, staff and visitors to seek alternate routes to access the complex.
According to a report by Daily Trust, out of more than 15,000 contractors, only about seven have been paid, but the government claims all payments have been settled.
With over 10,000 indigenous contractors claiming they are owed for capital projects executed since 2024, the situation reflects a deepening crisis in Nigeria’s public finance system.
The contractors say that despite assurances from the Minister of Finance, Wale Edun, and the Accountant-General of the Federation, Shamseldeen Ogunjimi, that payment processes had commenced, not a single kobo has been released to most indigenous firms.
This prolonged delay, in a context where the government reportedly owes contractors about N2 trillion, has pushed many into bankruptcy and left others unable to meet basic obligations.
Beyond the immediate hardship faced by contractors, the incident raises broader concerns about Nigeria’s weak budget discipline and inconsistent implementation of capital projects.
Despite extending the lifespan of the 2024 capital budget to 31 December, 2025, the federal government continues to operate overlapping fiscal cycles, running the 2023, 2024, and 2025 budgets concurrently.
This practice, described by development expert Umar Yakubu, Executive Director of the Centre for Fiscal Transparency and Public Integrity (CEFTPI), as ‘poor budgeting practice’, reflects fiscal irresponsibility and lack of transparency in public finance management.
Funding 2024 projects with 2025 revenues distorts the planning cycle and also undermines accountability and makes it difficult to assess the real impact of capital spending.
The low level of capital releases under President Bola Tinubu’s administration has further compounded the problem.
The contractors’ protests, which have disrupted legislative activities and blocked access to the National Assembly for two days, underline how government inefficiency trickles down to affect livelihoods, delay development projects, and erode trust between the state and indigenous businesses.
To restore confidence and prevent further disruption, the federal government must act swiftly.
The Minister of Finance, Wale Edun, and the Accountant-General, Shamseldeen Ogunjimi, should immediately publish a transparent payment schedule and ensure that the promised N760 billion warrant is cash-backed without further delay.
Also, the National Assembly must strengthen its oversight on fiscal implementation and demand accountability from the executive arm.
Additionally, the Budget Office of the Federation and the Debt Management Office must also ensure greater transparency in releases and project financing.
Above all, the Tinubu administration must prioritise the payment of indigenous contractors as a step toward restoring trust, supporting local enterprises, and safeguarding the credibility of Nigeria’s budgeting process.
Photo source: Punch
