The Federal Ministry of Finance has approved payments to more than 1,240 contractors across the country in a move aimed at providing immediate liquidity support to businesses and strengthening economic activity.
The ministry disclosed this in a statement by its Director of Information and Public Relations, Efe Ovuakporie.
According to the statement, 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 to ensure that only duly validated obligations qualified for payment.
The ministry said the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs) and form part of efforts by the Federal Government to clear long-standing payment obligations, particularly those affecting indigenous businesses and Small and Medium-sized Enterprises (SMEs).
It explained that contractors with verified claims of N100 million or less were prioritised in the latest batch of payments.
The ministry noted that the release of funds would provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial obligations and contribute to economic activities nationwide.
“The approval follows a diligent verification and reconciliation undertaken by the Ministry to ensure that only duly validated obligations qualify for payment,” the statement said.
The ministry described the development as a demonstration of its commitment to translating government policies into tangible outcomes through the transparent and fiscally responsible resolution of inherited obligations.
It further revealed that the Federal Government had, in recent months, processed payments exceeding ₦700 billion across different categories of verified obligations owed to local contractors.
According to the statement, approximately N436.6 billion in transactions were processed in May alone, reflecting what it described as a significant acceleration in payment activities designed to unlock liquidity and support economic growth.
The ministry said the decision to prioritise a large number of smaller contractors, rather than concentrating payments among a few large beneficiaries, was intended to broaden the economic impact of the disbursements and support businesses across various sectors and regions.
It added that the latest payments would help strengthen confidence among contractors, suppliers and service providers doing business with government by demonstrating its commitment to honouring 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 statement added.
The ministry reiterated 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.
