The Federal Government has commenced large-scale payments to more than 1,240 local contractors as part of efforts to clear verified outstanding obligations and stimulate business activity across the country.
The Ministry of Finance confirmed the development in a statement signed by its Head of Information and Public Relations, Efe Ovuakporie, noting that the disbursements followed a detailed verification and reconciliation exercise to ensure that only legitimate claims were approved for payment.
According to the ministry, the latest round of payments covers contractors engaged by various Ministries, Departments and Agencies (MDAs), with priority given to those holding verified claims of up to ₦100 million.
It explained that the initiative is designed to ease liquidity pressures on businesses, particularly indigenous firms and small and medium-sized enterprises (SMEs), while also helping them return to project sites, settle obligations, and sustain operations.
“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,” the statement said.
The ministry further disclosed that the Federal Government has processed over ₦700 billion in verified contractor obligations in recent months, with about ₦436.6 billion disbursed in May alone.
It added that prioritising smaller contractors is a deliberate strategy aimed at widening the economic impact of the payments across different sectors and regions of the country.
According to the statement, the initiative reflects government’s commitment to transparency, fiscal discipline, and the prompt settlement of verified debts in order to reduce outstanding liabilities and strengthen confidence among contractors and service providers.
Officials expressed optimism that the continued settlement of verified obligations would not only improve trust in government contracts but also support the delivery of ongoing public infrastructure and services nationwide.
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