Indigenous contractors besiege finance ministry, demand payment for executed contracts

Orisemeke Benjamin

Members of the Indigenous Contractors Association of Nigeria have blocked the entrance to the Ministry of Finance in Abuja, protesting the non-payment of funds for contracts they executed for the Federal Government.

The protesters carried placards with various inscriptions such as: “No nation thrives on broken promises. PAY contractors now”; “You can’t grow the economy by starving its builders”, among several others, demanded for the immediate payment of monies owed for completed projects since 2024.

The protesters denied staff entrance into the ministry as many who drove their cars were turned back. Even the Ministers’ convoy was not allowed to enter the ministry as the protesting contractors shouted “All we are saying

A contractor who did not want his name in print, said only a few people have been paid.

According to the man, who described himself as a member of indigenous contractor of Nigeria, said they won’t back down until their monies are paid.

He said, “That’s what I’m telling you now. If you pay a few people out of 1,000, is that payment?

“So, they have not paid, as far as we are concerned. As far as we, the indigenous contractors are concerned, we have not been paid. And that is why we have blocked everywhere in the Ministry of Finance, demanding for our payments.

“Almost a year after some of us have executed our projects, we are yet to be paid. We have explored every peaceful avenue to ensure that due process is followed. But yet, we have been torn down many times.

“The governments have not been consistent in their words to us, in their promises. They are not keeping it. That is why we are out.

“Demanding for what legitimately belongs to us. That is why we are here.”

A contractor, Charles Edo said, some contractors were paid a percentage out of what they were owed last Friday. According to him, why would the ministry pay some people and leave others.

He said that a lot of the contractors who took loans from banks have lost all the profit as many have had to take more loans to service the ones earlier collected.

He said, “Contractors are under the yoke of heavy debt burden because the profit margin allowed by the federal government in every contract has been eroded due to delay in payment

“The profit margin is 40 per cent, so what is left if you collected a facility from the bank?”

Linking the protest to the recent directive of the finance minister to MDAs to get approval of funds availability before awarding the contract, Barr. Edo said the situation will only get worse for contractors as it will encourage manipulation of the system by unscrupulous elements.

Recently, the federal government warned Ministries, Departments, and Agencies (MDAs) against awarding contracts without proof of available funds.

“The honorable minister of finance and AGF got it wrong by introducing a bottom to top approach in the payment of contractors which is subject to manipulation in the office of the accountant general.

“This idea of a centralised payment system from the accountant general office is totally wrong and unacceptable as it hampers timely and efficient payment for contracts already executed. You can imagine that over 60 percent of contractors who executed the 2024 budget are yet to be paid.  various ministries, departments and agencies of government should pay directly for the contracts awarded by them.

“Let me ask rhetorically, are the various MDAs now subservient to the minister of finance and the accountant general? Of what essence is appropriation by the National Assembly if approval needed to be sought for before MDAs award contracts. A lot of contractors have died due to non-payment of contracts already executed by them due to this bottom-up payment that is not feasible and practicable.

“The new stance is counter-productive and will definitely hamper project execution. As a matter of fact, a lot of people are wary of doing federal government contracts due to lack of cash backing.

“The Public Procurement Act 2007 does not confer such powers on the minister of finance or the accountant general to give approval to MDAs before they award contracts. The minister of finance and accountant general got it wrong,” he said.