Former presidential candidate of the Labour Party, Peter Obi, has criticised the federal government for failing to pay local contractors across the country, warning that the delays are worsening economic hardship for small and medium-sized businesses.

Obi said recent images and reports of contractors protesting in Abuja and other parts of Nigeria reflect the strain ordinary Nigerians are facing. He noted that many of the contractors had completed public projects with the expectation that government would honour its financial commitments.

He described the situation as especially troubling given President Bola Tinubu’s announcement in August that Nigeria had “met and surpassed its revenue target for the year.” According to Obi, such a declaration should ordinarily translate into increased investment in education, healthcare and poverty reduction. Instead, he argued, the refusal to settle outstanding payments contradicts the government’s claims of improved revenue performance.

Obi said the delays expose deeper concerns around transparency and accountability in public finance management. He noted that the non-payment of contractors has led to business closures, job losses and heightened hardship for families.

He insisted that sustainable economic growth is impossible when public funds are mismanaged and local businesses are treated as expendable. Genuine revenue growth, he said, should be seen in prompt payments, stronger MSMEs and reduced public borrowing.

“Meeting our obligations to contractors is not optional; it is a test of honesty, competence, and true leadership,” he said.

Obi added that any government unwilling to fulfil its commitments cannot be trusted to build the nation, stressing that disciplined management of public resources remains the only path toward an economy that works for all citizens.