By Anthony Otaru, Abuja
The Federal Ministry of Finance has approved payments to more than 1,240 contractors nationwide as part of efforts to clear verified debts and inject liquidity into businesses nationwide.
The payments, approved by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, followed a verification and reconciliation exercise conducted by the ministry to ensure that only legitimate obligations qualified for settlement.
This was disclosed in a statement issued on Monday by the Minister’s Senior Special Assistant on Communication and Press Secretary, Mary-Ann Duke.
According to the statement, the payments covered contractors across various Ministries, Departments and Agencies (MDAs), representing a significant step toward settling long-standing obligations owed to indigenous firms and small and medium-sized enterprises (SMEs).
The ministry stated that contractors prioritised in the latest round of payments were largely those with verified claims valued at ₦100 million or below.
The release of the funds is expected to provide immediate relief for hundreds of businesses, enabling them to return to project sites, pay workers, settle supplier obligations, and stabilise operations.
According to the ministry, the Federal Government has processed over ₦700 billion in verified payments owed to local contractors across different sectors in recent months.
“In May alone, transactions worth about ₦436.6 billion were processed, reflecting a significant acceleration in payment activities designed to unlock liquidity and stimulate economic growth,” the statement said.
The Government explained that prioritising payments to a large number of smaller contractors, rather than concentrating disbursements among a few major beneficiaries, was intended to broaden the economic impact across sectors and regions.
The ministry noted that the latest disbursements would strengthen confidence among contractors, suppliers, and service providers doing business with government institutions.
“For many beneficiaries, the release of these funds goes beyond a routine financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute meaningfully to economic recovery and growth,” the statement added.
The ministry reiterated its commitment to maintaining fiscal discipline while ensuring that all verified and legitimate obligations are settled promptly.
It added that the ongoing payment programme would gradually reduce outstanding liabilities, strengthen confidence in public financial management, and support the effective delivery of public services and infrastructure nationwide.
