FG approves payments to 1,240 contractors to clear verified liabilities

The Federal Ministry of Finance has approved payments to more than 1,240 local contractors in a move aimed at reducing outstanding verified obligations and improving liquidity for businesses across the country.

According to the Ministry, the approval followed a rigorous verification and reconciliation process to ensure that only duly validated claims are settled.

In a statement issued on Monday by Efe Ovuakporie, the Ministry’s Head of Information and Public Relations, the Ministry said: “This exercise reflects the Federal Government’s commitment to transparency and fiscal responsibility in the settlement of verified obligations.”

The payments cut across various Ministries, Departments and Agencies (MDAs), with priority given to contractors with verified claims of ₦100 million and below. Officials say the approach is intended to broaden the impact of the disbursement, especially for indigenous firms and small and medium-sized enterprises (SMEs).

The Ministry added that the intervention is expected to provide immediate relief to affected businesses. “The release of funds will enable contractors to return to project sites, meet payroll obligations, settle suppliers, and sustain ongoing operations,” the statement noted.

Over the past few months, the federal government reportedly processed over ₦700 billion in verified contractor payments, while about ₦436.6 billion was disbursed in May alone, reflecting what officials describe as an accelerated effort to reduce outstanding liabilities.

The Ministry further stated: “By prioritising a large number of smaller contractors, government is ensuring a wider distribution of economic benefits across sectors and regions.”

It also reiterated its commitment to maintaining fiscal discipline while clearing legitimate obligations. “We remain committed to reducing outstanding liabilities in a structured and transparent manner while supporting economic stability and growth,” the Ministry said.