Delayed payments threaten jobs and economic growth, contractors warn

By Progress Godfrey

Abuja — Members of the All Indigenous Contractors Association of Nigeria (AICAN) have raised concerns over the impact of delayed payments for federal government projects, warning that it could hinder economic growth, fuel unemployment, and exacerbate social vices.

The contractors resumed their demonstration on Monday in Abuja, demanding the release of over N4 trillion allegedly owed to them for projects executed under the 2024 Federal Government budget. They barricaded the entrance of the Federal Ministry of Finance, insisting on payment before leaving.

Speaking to journalists on Tuesday, a National Executive Member of AICAN, Mr. Johnson Akinsehinwa, said the delay in payments was detrimental to the country’s economy. He warned that persistent non-payment could weaken the economy, expose contractors to financial losses, and contribute to unemployment and social vices such as insecurity, banditry, and insurgency, particularly among idle youths.

“Many of the contractors employ numerous workers whose livelihoods are directly affected by the government’s failure to release funds for completed projects,” Akinsehinwa said.

He also noted that Nigeria’s economy relies heavily on government spending, with delayed budget implementation worsening economic pressures. According to him, only about 50 percent of the 2024 budget has reportedly been executed.

“When previous budgets are not fully implemented, it becomes difficult to commence subsequent ones. This creates pressure on the economy and affects employment generated through government-induced businesses,” he explained.

Another National Executive Member of AICAN, Mr. Saidu Jega, said the government, through its Ministries, Departments and Agencies (MDAs), is central to resolving the issue, as it serves as the procuring entity for capital projects that sustain jobs and livelihoods.

“In executing these contracts, many people are employed, with several dependants relying on them. Economically, the impact is far-reaching,” Jega said, urging the government to ensure prompt payments to contractors to avoid further disruption of economic activities and deepening hardship across affected sectors.

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