Finance Ministry Approves Payments to 1,240 Contractors
…Targets SMEs and Local Businesses
The Federal Ministry of Finance has approved payments to more than 1,240 contractors across Nigeria, in a move aimed at boosting liquidity for businesses and fulfilling the Federal Government’s outstanding financial obligations.
According to a statement issued by the ministry, the approval was granted following a comprehensive verification and reconciliation process to ensure that only validated claims qualified for payment.
The ministry said the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs), with priority given to those with verified claims of ₦100 million or less. The measure is expected to provide immediate financial relief to hundreds of indigenous businesses and small and medium-sized enterprises (SMEs).
Officials noted that the disbursement would enable contractors to return to project sites, pay workers, settle suppliers, meet financial commitments and stimulate economic activities nationwide.
The ministry described the development as part of ongoing efforts to resolve inherited obligations in a transparent and fiscally responsible manner while translating government policies into tangible economic benefits.
It disclosed that the Federal Government has processed payments exceeding ₦700 billion in verified obligations owed to local contractors in recent months. Of this amount, about ₦436.6 billion was processed in May alone, reflecting what it described as a significant acceleration in payment activities.
The ministry said prioritising a large number of smaller contractors rather than concentrating payments among a few major beneficiaries would broaden the economic impact of the intervention and support businesses across different sectors and regions.
It added that the latest round of payments is expected to strengthen confidence among contractors, suppliers and service providers by demonstrating the government’s commitment to honouring verified obligations.
The ministry reaffirmed its commitment to maintaining fiscal discipline while ensuring the timely settlement of legitimate debts, reducing outstanding liabilities and supporting the delivery of public services and infrastructure projects.
