The Federal Government has approved payments to more than 1,240 local contractors as part of efforts to clear verified outstanding obligations and support business activities across the country.
The disclosure was made in a statement issued by the Ministry of Finance and signed by its Head of Information and Public Relations, Efe Ovuakporie.
According to the ministry, the payments followed a verification and reconciliation exercise designed to ensure that only validated claims were settled.
The disbursements cover contractors engaged by various Ministries, Departments and Agencies and are expected to provide liquidity support to businesses, particularly indigenous firms and small and medium-sized enterprises.
Contractors with verified claims of up to ₦100 million were prioritised in the latest round of payments.
“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 said the initiative reflects the government’s commitment to settling outstanding obligations in a transparent and fiscally responsible manner.
It added that more than ₦700 billion in verified contractor claims has been paid in recent months, with about ₦436.6 billion processed in May alone.
According to the ministry, prioritising smaller contractors is intended to widen the economic impact of the payments by supporting businesses across different sectors and regions.
The government expressed confidence that the disbursements would strengthen trust among contractors, suppliers and service providers while supporting the execution of public projects.
The ministry said it remains committed to fiscal discipline and the prompt settlement of legitimate claims as part of efforts to reduce outstanding liabilities and improve infrastructure and service delivery.
