By Nehemiah Anini for The Chronicles of Construction
The Nigerian construction industry is once again in the spotlight, as the Chairman of the House of Representatives Committee on Monitoring and Evaluation, Hon. Obi Aguocha, has called on the Federal Government to urgently review its current mode of contractor payments.
This follows a wave of unrest among contractors, including protests by the Concerned Local Contractors and threats of similar action by the All Indigenous Contractors Association of Nigeria (AICAN). Both groups have raised concerns over delayed payments, despite having completed projects for the government.
According to AICAN, over 90% of projects executed on behalf of the Federal Government in 2024 remain unpaid, leaving contractors to battle mounting bank loans, rising interest rates, and dwindling capacity to take on new assignments.
Contractors are the backbone of project delivery — from housing to infrastructure — and delayed payments create a ripple effect that touches every sector. Hon. Aguocha warned that the current central payment system domiciled in the Office of the Accountant General of the Federation (OAGF) and the Ministry of Finance has failed to achieve efficiency, and therefore must be revisited.
“Non-payment of contractors not only erodes public trust but delays execution, inflates costs, and places further strain on resources,” he stated.
Risks at Stake
- Project Delays & Abandonment: Contractors are hesitant to accept new projects without assurances of timely payment.
- Community Impact: Communities in urgent need of infrastructure may remain underserved.
- Budget Disruption: With just four months left in 2025, emphasis is still on clearing backlogs from 2024 projects — undermining effective planning for the new budget cycle.
- Debt Concerns: Questions linger on what happened to the $22 billion borrowing transaction recently approved by the National Assembly for nationwide projects.
Hon. Aguocha emphasized that project execution is the surest way of bringing the dividends of democracy to the grassroots. He urged the Federal Government to act swiftly, ensuring that project funding is released and managed transparently so that Nigerians are not shortchanged.
For professionals in the built environment, this situation is more than just a financial issue — it’s about restoring confidence in project delivery, ensuring sustainability, and protecting the industry’s reputation.
At The Chronicles of Construction, we continue to track these critical developments, because payment policies and execution timelines shape the very foundation of Nigeria’s built environment.The art of building. The soul of storytelling
