The Federal Government has agreed to pay 35 percent of the N150 billion owed to indigenous contractors upfront, in a move aimed at resolving outstanding payment disputes.

The President of the All Indigenous Contractors Association of Nigeria, Mr. Jackson Nwosu, confirmed the development after a meeting with the Minister of Finance, Mr. Wale Edun, according to the News Agency of Nigeria.

The decision follows the resumption of protests by contractors calling for the immediate settlement of unpaid contracts, marking a step toward addressing the long-standing financial obligations.

Mr. Nwosu said the agreement was reached after direct talks between AICAN officials and the Minister of Finance, prompted by the renewed protests by contractors.
He noted that the N150 billion owed is part of a larger N1.15 trillion debt for capital projects executed across several states, including the Federal Capital Territory, in 2024.

“Nwosu described the outcome of the meeting as encouraging, expressing optimism that the government would fulfil its commitments.

“The Federal Government had proposed to pay 35 per cent of the N150 billion being demanded immediately, with the balance to be paid in phases in the coming weeks,” the NAN report read.

Nwosu described the outcome of the meeting as encouraging, expressing confidence that the government would honour its commitments.

He added that the payment plan represents an initial step toward clearing verified debts owed to indigenous contractors and reducing tensions between the contractors and the Federal Government.

Mr. Nwosu said contractors were instructed to obtain batch numbers from the relevant Ministries, Departments, and Agencies (MDAs) to enable payment processing. He explained that those without valid batch numbers would need to secure new warrants, as earlier numbers had been updated for the new fiscal year.

The association noted that although the timeframe for obtaining the batch numbers is tight, the meeting signals progress toward resolving the backlog of unpaid contracts.

Contractors are expected to receive the balance of the N150 billion through phased disbursements in the coming weeks.

It was earlier reported that AICAN had warned it could stage protests at the All Progressives Congress national convention in Abuja over delayed payments.

Nwosu made the remarks in Abuja during a renewed protest by members of the association, who demanded the immediate release of the N150 billion owed for verified federal projects executed in 2024 and 2025.

The association said only N21 billion has been released to date, leaving more than N1 trillion in outstanding liabilities.

It added that the 2026 Appropriation Bill earmarked N1.7 trillion to settle verified contractors’ debts from 2024, along with an additional N100 billion for other local contractors’ obligations.