More than 1,240 local contractors are to be paid for various jobs executed for the Federal Government for which payments are still outstanding, the Federal Ministry of Finance has announced.
The Ministry said the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, gave the
approval for the payments to provide immediate liquidity support to businesses across the country to reinforce the Federal Government’s commitment to meeting its financial obligations.
The approval followed a diligent verification and reconciliation undertaken by the Ministry to ensure that only duly validated obligations qualified for payment.
The payments, which cover contractors across various Ministries, Departments and Agencies (MDAs) represent a significant step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).
Contractors prioritised for payment in the most recent batch are those with verified claims in the region of ₦100 million or less.
The release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites to enable them pay workers, settle suppliers, meet financial commitments, and support economic activity across the country.
The Ministry said the development reflects government’s commitment to translating policy objectives into tangible outcomes by resolving inherited obligations in a transparent and fiscally responsible manner.
Over the past few months, the Ministry said the Federal Government processed payments exceeding ₦700 billion across various categories of verified obligations owed to local contractors.
Within the month of May alone, the Ministry said approximately ₦436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.
By prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the Ministry said the Government was broadening the economic impact of these disbursements, supporting businesses across different sectors and regions of the country.
The latest payments, the Ministry explained, were expected to strengthen confidence among contractors, suppliers, and service providers doing business with government by demonstrating the Government’s commitment to honouring duly verified obligations.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the Ministry said.
The Ministry said it remained committed to maintaining fiscal discipline, while ensuring that legitimate obligations were settled in a timely manner going forward to substantially reduce outstanding liabilities over time, strengthen confidence in public financial management, and support the effective delivery of public services and infrastructure.
