The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing a significant liquidity boost to businesses nationwide and reaffirming the Federal Government’s commitment to settling verified financial obligations.
The approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following a verification and reconciliation exercise conducted to ensure that only legitimate and validated claims qualified for payment.
According to a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister, the payments cover contractors working with various Ministries, Departments and Agencies (MDAs) and form part of efforts to address outstanding obligations owed to businesses, particularly indigenous firms and small and medium-sized enterprises (SMEs).
The ministry stated that contractors with verified claims of ₦100 million or less were prioritised in the latest round of payments. The disbursement is expected to enable beneficiaries to resume projects, pay employees, settle suppliers, meet financial commitments and stimulate economic activity.
The statement further revealed that the Federal Government has processed more than ₦700 billion in verified payments to local contractors in recent months. In May alone, about ₦436.6 billion was disbursed, reflecting an accelerated effort to clear outstanding obligations and inject liquidity into the economy.
The ministry noted that distributing payments among a large number of smaller contractors would broaden the economic benefits across sectors and regions, while also strengthening confidence in government financial management.
Officials said the initiative would help sustain business operations, preserve jobs, support infrastructure delivery and contribute to economic recovery, while reinforcing the government’s commitment to fiscal discipline and the prompt settlement of legitimate debts.