The Federal Government has agreed to pay 35% of the ₦150 billion owed to indigenous contractors upfront, offering relief after months of tension and protests.
However, The development was confirmed by Jackson Nwosu, President of the All Indigenous Contractors Association of Nigeria.
Deal Reached After High-Level Talks
Also, The agreement followed a crucial meeting between contractors’ representatives and the Minister of Finance, Wale Edun.
According to stakeholders, the move is part of efforts to:
- Ease financial pressure on contractors
- Resolve long-standing payment disputes
- Restore trust between the government and local businesses
Protests Forced Urgent Action
Moreover, Before this resolution, members of the All Indigenous Contractors Association of Nigeria had resumed protests across parts of the country.
Their demands were clear:
- Immediate settlement of outstanding debts
- Recognition of completed projects
- Assurance of future payment timelines
The protests highlighted the growing frustration within the sector.
What the 35% Payment Means
While not a full settlement, the upfront payment represents a significant step forward:
- Contractors will receive immediate cash flow support
- Ongoing and stalled projects may resume
- Businesses affected by delayed payments can begin recovery
Although, The remaining balance is expected to be addressed in phases.
Impact on Nigeria’s Economy
The construction and infrastructure sector plays a key role in economic development.
This move could:
- Revive stalled infrastructure projects
- Protect jobs linked to construction work
- Boost confidence among local investors and contractors
What Comes Next?
Attention will now shift to:
- Timeline for paying the remaining 65%
- Government’s ability to sustain commitments
- Long-term reforms to prevent future debt buildup
The Federal Government’s decision to release part of the ₦150 billion debt signals a step toward resolving a major economic bottleneck.
For many contractors, this is more than just payment — it’s a lifeline that could determine whether their businesses survive or collapse.
