Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reaffirming the Federal Government’s commitment to meeting its financial obligations.
Gatekeepers News reports that the the approval, granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, followed a verification and reconciliation exercise conducted by the ministry to ensure that only duly validated claims qualified for payment.
This was disclosed in a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance.
According to the statement, the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs) and represent a major step towards addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).
The ministry noted that contractors with verified claims of ₦100 million or less were prioritised in the latest batch of payments.
It explained that the disbursement would provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments and stimulate economic activity nationwide.
The statement further revealed that the Federal Government has, in recent months, processed payments exceeding ₦700 billion across different categories of verified obligations owed to local contractors.
Within May alone, approximately ₦436.6 billion in transactions were processed, reflecting a significant increase in payment activity aimed at unlocking liquidity and supporting economic growth.
The ministry said the decision to prioritise a large number of smaller contractors, rather than concentrating payments among a few major beneficiaries, was designed to broaden the economic impact of the disbursements and support businesses across various sectors and regions of the country.
It added that the latest payments would strengthen confidence among contractors, suppliers and service providers doing business with government by demonstrating its commitment to settling duly verified obligations.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the statement said.
The ministry reaffirmed its commitment to maintaining fiscal discipline while ensuring that legitimate obligations are settled promptly.
It added that the ongoing payment programme would significantly reduce outstanding liabilities over time, strengthen confidence in public financial management and support the effective delivery of public services and infrastructure across the country.
