FG approves payments to over 1,240 contractors across MDAs, prioritising verified claims of ₦100m or less.
The Federal Ministry of Finance has approved payments to more than 1,240 local contractors across various Ministries, Departments and Agencies (MDAs), with priority given to verified claims of ₦100 million or less, as part of ongoing efforts to settle outstanding government liabilities and inject liquidity into businesses nationwide.
According to a statement issued by the ministry, the approvals followed a verification and reconciliation process designed to ensure that only validated claims qualified for payment. The ministry said the exercise was approved by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele.
The payments cover contractors engaged by different federal government institutions and are expected to benefit a wide range of indigenous businesses, including small and medium-sized enterprises (SMEs).
The ministry said contractors with verified claims of ₦100 million or less were prioritised in the latest round of payments. It noted that the release of funds would enable beneficiaries to resume project work, pay employees, settle supplier obligations and meet other financial commitments.
“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 latest disbursement forms part of a broader effort by the federal government to address outstanding liabilities owed to contractors. According to the ministry, more than ₦700 billion has been paid in verified obligations to local contractors in recent months.
It also disclosed that approximately ₦436.6 billion in transactions were processed in May alone, indicating an increase in payment activity during the period.
Nigeria’s government has faced recurring concerns over delayed payments to contractors, a challenge that industry stakeholders have argued affects project delivery, business operations and employment across several sectors. Delayed settlements have also been cited as a factor contributing to liquidity pressures for firms executing public contracts.
In its statement, the ministry said the current approach seeks to broaden the impact of government payments by focusing on a larger number of smaller contractors rather than a limited number of large beneficiaries.
“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,” the ministry stated.
They added that the payments could help improve confidence among contractors, suppliers and service providers that do business with government institutions.
“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 Federal Ministry of Finance said it would continue efforts to balance the settlement of verified obligations with broader fiscal management objectives.
“The Ministry remains committed to maintaining fiscal discipline while ensuring that legitimate obligations are settled in a timely manner going forward to substantially reduce outstanding liabilities over time, strengthen confidence in public financial management, and support the effective delivery of public services and infrastructure,” the statement added.
The development comes as the federal government continues to pursue measures aimed at improving public financial management, reducing inherited liabilities and supporting economic activity through the timely settlement of verified obligations.
