The Federal Government has approved payments to more than 1,240 local contractors in a move aimed at injecting liquidity into businesses, stimulating economic activity, and reaffirming its commitment to settling verified financial obligations.
The approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, following a comprehensive verification and reconciliation exercise conducted by the Federal Ministry of Finance to ensure that only duly validated claims qualified for payment.
According to the Head of Information and Public Relations Unit of the Ministry, Efe Ovuakporie, the payments cover contractors across various Ministries, Departments and Agencies (MDAs) and represent a major intervention to address long-standing obligations owed to indigenous businesses and small and medium-sized enterprises, SMEs.
The Ministry disclosed that contractors with verified claims of ₦100 million or less were prioritised in the latest batch of payments, a strategy designed to extend the benefits of government spending to a wider spectrum of businesses across the country.
It noted that the release of funds would provide immediate relief to hundreds of contractors, enabling them to return to project sites, pay workers’ salaries, settle outstanding obligations to suppliers, meet financial commitments, and contribute to economic growth.
The Ministry said the initiative reflects its determination to translate policy objectives into tangible outcomes through the transparent and fiscally responsible resolution of inherited liabilities.
It further revealed that the Federal Government had, over the past few months, processed payments exceeding ₦700 billion across different categories of verified obligations owed to local contractors. Of this amount, approximately ₦436.6 billion was processed in May alone, signalling a significant acceleration in payment activities.
According to the Ministry, prioritising a large number of smaller contractors rather than concentrating payments among a few major beneficiaries is expected to broaden the economic impact of the disbursements, supporting businesses across multiple sectors and regions.
The latest round of payments is also expected to strengthen confidence among contractors, suppliers and service providers engaged by government, while providing the certainty required to sustain operations, preserve jobs, complete ongoing projects and support economic recovery.
The Ministry reaffirmed its commitment to maintaining fiscal discipline while ensuring that legitimate obligations are settled promptly, with a view to reducing outstanding liabilities, strengthening confidence in public financial management and enhancing the delivery of public services and infrastructure nationwide.
