FG approves payment of over 1,240 contractors, releases N700bn in obligations

The Federal Ministry of Finance says it has approved payments to more than 1,240 contractors across various ministries, departments and agencies (MDAs) as part of efforts to clear verified outstanding obligations and ease liquidity pressures in the economy.

In a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, the ministry said the approvals followed a comprehensive verification and reconciliation exercise to validate legitimate claims.

According to the statement, contractors with verified outstanding payments of N100 million and below were prioritised in the latest tranche of disbursements.

“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 intervention is designed to provide relief to indigenous contractors and small and medium-scale enterprises (SMEs), enabling them to return to project sites, settle outstanding obligations to workers and suppliers, and sustain ongoing operations.

It added that the focus on smaller contractors was intended to widen the distributional impact of government payments across sectors and regions, while strengthening confidence in public procurement processes.

Mary-Ann Duke noted that the federal government had processed over N700 billion in verified obligations owed to local contractors in recent months, describing the development as part of a broader fiscal settlement strategy.

She further disclosed that within May alone, about N436.6 billion in payments were processed, reflecting what she described as a significant acceleration in the government’s debt clearance efforts.

The ministry said the sustained payment drive is expected to improve liquidity in the real sector, support job retention, and enable contractors to complete stalled or ongoing federal projects.

It also expressed optimism that the exercise would restore confidence among contractors, suppliers and service providers engaged in federal contracts.

In January, aggrieved local contractors had blocked the Ministry of Finance over unpaid debts, while the Senate later set up a committee to engage the ministry on outstanding obligations owed to contractors.

The latest payment initiative comes amid continued calls for transparency and efficiency in the settlement of federal government liabilities to private sector partners.

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