By Ayomide Otitoju
The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses and reaffirming the Federal Government’s commitment to meeting its financial obligations.
The approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, following 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 ministry, the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs) and represent a significant effort to address longstanding obligations owed to businesses, particularly indigenous companies and small and medium-sized enterprises (SMEs).
The statement noted that contractors with verified claims of ₦100 million or less were prioritised in the latest batch of payments.
The disbursement is expected to provide immediate relief to affected businesses by enabling them to resume project execution, pay employees, settle suppliers, meet financial commitments, and stimulate economic activity across the country.
The ministry further disclosed that the Federal Government has, in recent months, processed more than ₦700 billion in payments across different categories of verified obligations owed to local contractors.
Of this amount, approximately ₦436.6 billion was processed in May alone, reflecting an accelerated effort by the government to unlock liquidity, support business operations, and drive economic growth.
According to the statement, the decision to prioritise a broad range of smaller contractors rather than concentrating payments among a limited number of large beneficiaries is intended to maximise the economic impact of the disbursements across sectors and regions.
The ministry said the latest payments would strengthen confidence among contractors, suppliers, and service providers doing business with the government by demonstrating its commitment to honouring 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 reiterated its commitment to maintaining fiscal discipline while ensuring the prompt settlement of legitimate obligations.
It added that the ongoing payment programme would help reduce outstanding liabilities, strengthen confidence in public financial management, and support the effective delivery of public infrastructure and services nationwide.
