The Federal Government has approved the payment of verified contractual obligations to more than 1,240 local contractors across the country, in a move aimed at stimulating economic activity, supporting indigenous businesses and reinforcing confidence in public financial management.
The approval was granted by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following an extensive verification and reconciliation exercise conducted by the Federal Ministry of Finance to ensure that only legitimate and duly validated claims qualified for payment.
According to a statement issued by the Ministry, the latest disbursement covers contractors engaged by various Ministries, Departments and Agencies (MDAs) and represents a significant intervention in addressing long-standing payment obligations inherited by the government.
The Ministry disclosed that priority was given to contractors with verified claims of ₦100 million or less, a strategy designed to ensure that a larger number of small and medium-sized enterprises (SMEs) benefit directly from the exercise. The payments are expected to provide immediate financial relief to businesses, enabling them to return to project sites, meet payroll obligations, settle outstanding debts with suppliers and continue delivering critical services and infrastructure projects.
Officials noted that the initiative aligns with the Federal Government’s broader economic agenda of supporting enterprise growth, preserving jobs, and injecting liquidity into the economy. By focusing on smaller contractors, the government seeks to widen the economic impact of the disbursements across different sectors and geographical regions rather than concentrating benefits among a limited number of large firms.
The Ministry further revealed that over the past few months, the Federal Government has processed payments exceeding ₦700 billion in verified obligations owed to local contractors and service providers. Within the month of May alone, approximately ₦436.6 billion was disbursed, reflecting a significant acceleration in payment activities aimed at unlocking capital for businesses and stimulating economic growth.
Economic stakeholders have welcomed the development, noting that the timely settlement of verified debts will improve cash flow for businesses, enhance productivity and strengthen confidence among contractors and suppliers engaged in government projects.
For many beneficiaries, the release of funds represents more than the settlement of outstanding invoices. It provides the certainty required to sustain operations, retain employees, complete ongoing projects and contribute meaningfully to national economic recovery and development efforts.
The Federal Ministry of Finance reiterated its commitment to maintaining fiscal discipline while ensuring that legitimate obligations are settled promptly. The Ministry emphasized that ongoing efforts to reduce outstanding liabilities will strengthen transparency, improve public financial management systems, and enhance the effective delivery of public services and infrastructure across the country.
The latest payment approval underscores the Federal Government’s determination to translate economic policy objectives into tangible outcomes, while fostering a more reliable and business-friendly environment for contractors and investors operating within Nigeria’s public sector ecosystem.
