The Federal Ministry of Finance has approved the payment of verified outstanding obligations to more than 1,240 local contractors, a move aimed at injecting liquidity into businesses and strengthening confidence in government financial commitments.
Key highlight:
5 Key Points
- The Federal Ministry of Finance has approved payment of verified outstanding debts owed to more than 1,240 local contractors across various government agencies.
- The payments followed a thorough verification process to ensure that only legitimate and validated claims were settled.
- Contractors with verified claims of ₦100 million or less were prioritized, with a focus on supporting indigenous businesses and SMEs.
- The Federal Government has processed over ₦700 billion in verified contractor obligations in recent months, including about ₦436.6 billion in May alone.
- The initiative is expected to boost business liquidity, preserve jobs, support project completion, strengthen confidence in government contracts, and stimulate economic growth.
The development was disclosed in a statement issued by the Ministry’s Head of Information and Public Relations Unit, Efe Ovuakporie.
According to the statement, the approval followed a comprehensive verification and reconciliation process designed to ensure that only legitimate and validated claims were cleared for payment.
The disbursement covers contractors engaged by various Ministries, Departments and Agencies (MDAs) and is expected to address long-standing payment obligations, particularly those affecting indigenous firms and small and medium-sized enterprises (SMEs).
The Ministry stated that contractors with verified claims of ₦100 million or less were prioritised in the latest phase of payments. The intervention is expected to enable affected businesses to resume project execution, pay workers, settle outstanding debts to suppliers and meet other financial obligations.
The government noted that the initiative forms part of ongoing efforts to translate economic policies into measurable outcomes through the settlement of inherited liabilities in a transparent and fiscally responsible manner.
According to the Ministry, the Federal Government has processed payments exceeding ₦700 billion in verified obligations owed to local contractors in recent months.
It added that approximately ₦436.6 billion worth of transactions were processed in May alone, reflecting an accelerated effort to improve liquidity within the economy and stimulate business activities.
The Ministry explained that prioritising a large number of smaller contractors, rather than focusing payments on a few major beneficiaries, would help spread the economic benefits across different sectors and regions of the country.
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Officials expressed optimism that the payments would strengthen trust among contractors, suppliers and service providers who work with government institutions by demonstrating a commitment to meeting verified financial obligations.
The statement further noted that the release of funds would help many businesses sustain operations, preserve jobs, complete ongoing projects and contribute to broader economic growth.
The Ministry reaffirmed its commitment to prudent fiscal management while ensuring that genuine obligations are settled promptly, with the goal of reducing outstanding liabilities, improving public financial management and supporting the delivery of critical infrastructure and public services.
