The Federal Government, through the Ministry of Finance, has approved payments to more than 1,240 local contractors, a move aimed at injecting immediate liquidity into indigenous businesses and reinforcing the government’s commitment to meeting its financial obligations.
The approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, following what the Ministry described as a diligent verification and reconciliation exercise to ensure that only duly validated obligations qualify for payment.
The payments cover contractors across various Ministries, Departments and Agencies (MDAs) and represent a significant step in addressing long-standing payment obligations, particularly those affecting small and medium-sized enterprises (SMEs).
A statement from the Ministry clarified that to ensure a broader economic impact, this current batch prioritizes smaller contractors with verified claims of ₦100 million or less.
It added that 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.
It said this development reflects the government’s commitment to translating policy objectives into tangible outcomes by resolving inherited obligations in a transparent and fiscally responsible manner.
Over ₦700bn Processed in Recent Months
The statement disclosed that over the past few months, the Federal Government has processed payments exceeding ₦700 billion across various categories of verified obligations owed to local contractors. Within the month of May alone, approximately ₦436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.
By prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the Government is broadening the economic impact of these disbursements, supporting businesses across different sectors and regions of the country.
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Boosting Contractor Confidence
The latest payments are expected to strengthen confidence among contractors, suppliers, and service providers doing business with the government by demonstrating the Government’s commitment to honouring 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 Ministry said it remains committed to maintaining fiscal discipline while ensuring that legitimate obligations are settled in a timely manner going forward. The goal is to substantially reduce outstanding liabilities over time, strengthen confidence in public financial management, and support the effective delivery of public services and infrastructure.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X