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 announcement was made on Monday in a statement by the ministry.
According to the ministry, the approval, granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, follows a diligent verification and reconciliation undertaken by the ministry to ensure that only duly validated obligations qualify for payment.
The payments was said to cover contractors across various Ministries, Departments and Agencies, MDAs, and represent a significant step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises, SMEs.
The ministry said contractors prioritised for payment in the most recent batch were 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, pay workers, settle suppliers, meet financial commitments, and support economic activity across the country.
This development, the government said, reflected the ministry’s commitment to translating policy objectives into tangible outcomes by resolving inherited obligations in a transparent and fiscally responsible manner.
The ministry stated that over the past few months, the federal government had processed payments exceeding ₦700 billion across various categories of verified obligations owed to local contractors.
It said within the month of May alone, 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 the disbursements, supporting businesses across different sectors and regions of the country.
The latest payments, it was added, 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.
The ministry said for many beneficiaries, the release of funds represented 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 remains committed to maintaining fiscal discipline while ensuring that legitimate obligations are 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,” the ministry stated.
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