Federal Government has approved payments to over 1,240 contractors, prioritising verified claims below N100 million to ease liquidity pressures

The Federal Government of Nigeria has approved payments to more than 1,240 contractors across ministries, departments and agencies in a move aimed at easing outstanding obligations and improving liquidity in the economy.

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The approval was announced by the Federal Ministry of Finance in a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance.

According to the ministry, the payments followed a verification and reconciliation exercise designed to confirm valid outstanding claims submitted by contractors.

It stated that contractors with verified claims of N100 million and below were prioritised in the latest disbursement cycle.

“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 explained that the initiative is intended to support indigenous businesses and small and medium-sized enterprises, allowing them to resume project execution, pay workers and settle obligations to suppliers.

Officials said the government has now processed more than N700 billion in verified contractor debts in recent months as part of ongoing fiscal settlement efforts.

Within May alone, about N436.6 billion in transactions were processed, reflecting what the ministry described as an acceleration in payment activity aimed at stimulating economic stability and growth.

The government added that prioritising smaller contractors is intended to ensure wider distribution of funds across sectors and regions while sustaining ongoing infrastructure and service delivery projects.

It also noted that the latest payments are expected to boost confidence among contractors and service providers working with government agencies.

The development comes months after tensions over unpaid debts led to protests by contractors at the Ministry of Finance, as well as subsequent Senate intervention seeking clarity on outstanding obligations.