The Federal Ministry of Finance has approved payments to more than 1,240 contractors across various ministries, departments and agencies (MDAs), as part of efforts to settle verified outstanding obligations.
In a statement issued on Monday, Mary-Ann Duke, senior special assistant on communication and press secretary to the minister of finance, said the approvals followed a verification and reconciliation exercise carried out to validate pending claims.
According to the ministry, contractors with verified claims of N100 million or less were given priority in the latest round of payments.
“The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations,” the statement said.
The ministry noted that the disbursement is expected to ease financial pressure on indigenous businesses and small and medium-sized enterprises (SMEs), allowing them to resume projects, pay employees and settle suppliers.
“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less,” Duke stated.
The statement also revealed that the federal government has processed over N700 billion in verified obligations owed to local contractors in recent months.
Within May alone, about N436.6 billion worth of transactions were processed, reflecting an increase in payment activity aimed at improving liquidity and stimulating economic growth.
The ministry explained that prioritising smaller contractors was designed to widen the impact of the payments across different sectors and regions while helping businesses maintain operations, retain jobs and complete ongoing projects.
It added that the move is expected to strengthen confidence among contractors, suppliers and service providers engaged by the government.
In January, local contractors reportedly blocked Doris Uzoka-Anite, former minister of state for finance, from gaining access to the ministry over unpaid obligations.
Six months later, the Senate established a committee to engage the finance ministry on outstanding debts owed to contractors.