For two days in a row during the first week of this month, local builders affiliated with the All Indigenous Contractors Association of Nige...
For two days in a row during the first week of this month, local builders affiliated with the All Indigenous Contractors Association of Nigeria (AICAN) obstructed the primary entrance to the National Assembly, compelling legislators, employees, and guests to use other paths to reach the building. The contractors were demonstrating against the government's failure to compensate them for completed work.
The national leader of AICAN, Jackson Ifeanyi Nwosu, stated that the federal government has not compensated contractors for capital projects carried out since 2024, causing several of them to go bankrupt.
"We didn't begin this demonstration just yesterday (Tuesday). We have been doing this for months. This administration owes us, and they had pledged to compensate. Since then, it's been nothing but empty promises and disappointments. We can't keep going like this. We can no longer provide for our families," Nwosu stated.
Contractors are not the only ones facing challenges due to the federal government's inability to fulfill its financial commitments. Federal lawmakers' constituency projects have been reduced by half, now standing at N500 million. During a town hall meeting with his constituents, Yusuf Gagdi, a member of the House of Representatives representing the Pankshin/Kanke/Kanam Federal Constituency in Plateau State, voiced worries about the government's failure to disburse funds for capital projects in the 2025 budget year.
He stated that while President Tinubu had initially authorized a N1bn constituency project allocation for each member of the House of Representatives, the amount was recently reduced by half because of financial difficulties.
"Only last week, the President contacted the Speaker of the House of Representatives, stating that the 2025 budget is unsustainable. Following this, the President cut our constituency intervention project from N1bn to N500m," Gagdi mentioned.
In the same way, two weeks ago, civil servants through the Federal Workers Forum (FWF) requested the government to settle their three-month unpaid wage award. The organization, in a statement signed by its National Coordinator, Comrade Andrew Emelieze, stated that the payments had been irregular and urged the government to resolve the accumulation of promotion-related arrears.
Employees in federal Ministries, Departments, and Agencies (MDAs) have also expressed concerns over the failure to release capital spending for the year 2025.
They also claimed that the release of recurring expenses has been irregular, pointing out that since January 2025, little progress has been made in meeting their responsibilities.
They further claimed that key ministries have experienced a lack of funding for capital investments, with the exception of non-treasury supported agencies that are only occasionally carrying out such projects.
Interestingly, all of this occurs despite the government acknowledging significant savings and a major increase in the revenue it has been generating.
It was reported that the federal government has managed to save significant sums since ending the fuel subsidy, which previously cost approximately N380bn each month. In the first quarter of 2025 alone, revenue from petroleum savings rose by more than 500 per cent, increasing from N154bn to N836bn, with the surplus expected to surpass N11trn between 2023 and 2025.
The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, recently informed State House reporters that federal revenue has increased significantly over two years, reaching N3.64 trillion in September 2025 alone, compared to N711 billion recorded in May 2023. He pointed out that non-oil revenue expanded from N151 billion to N1.06 trillion, oil taxes climbed to N644 billion from N96 billion, and Value Added Tax (VAT) surged to N723 billion from N218 billion during this time.
In May, the Nigeria Customs Service reported earning N1.3trn in the first quarter of 2025, exceeding the N600bn it earned during the same period in 2023 by over 100%. By the end of the first half of the year, the Service had gathered N3.68trn, surpassing its goal by N390bn.
In September, the presidency revealed that Nigeria earned N20.6trn in revenue from January to August 2025, an increase from N14.6trn during the same period in the previous year. Indeed, President Tinubu was recently quoted as stating that the federal government has achieved all its expected revenue for this year, eliminating the necessity to obtain a loan to cover its budgetary needs. Ironically, the government received approval from the National Assembly to raise N1.5 trillion from the domestic market to address its financial requirements.
Nigerians are thus left puzzled by the varying positions taken by the government in this matter. More significantly, its open refusal to adhere to its financial plans could lead to a decline in trust in its commitments. The underfunding of essential ministries might also cause a drop in the motivation of staff responsible for implementing its initiatives.
In numerous nations, governments act as the primary driver for economic growth and make concerted efforts to implement policies and initiatives aimed at boosting the economy.
The Daily Trust holds the view that the federal government has a responsibility to boost the economy, particularly following its acknowledgment of achieving revenue goals, implementing various taxes, obtaining budget assistance from international bodies, and acquiring multiple loans.
We would like to bring to the government's attention its constitutional responsibility to safeguard the welfare of its people through effective service provision.
Provided by SyndiGate Media Inc. (Syndigate.info).
