The Federal Ministry of Finance has approved payments to more than 1,240 local contractors in a move aimed at boosting liquidity for businesses and fulfilling outstanding government obligations.
According to a statement issued on Monday and signed by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance and Coordinating Minister of the Economy, the approval followed a verification and reconciliation process conducted by the ministry.
The statement said the payments were approved by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, after ensuring that only validated obligations qualified for settlement.
“The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations,” the statement said.
The payments cover contractors across various Ministries, Departments and Agencies (MDAs) and are expected to address long-standing obligations, particularly those owed to indigenous businesses and small and medium-sized enterprises.
The ministry said contractors with verified claims of ₦100 million or less were prioritised in the latest batch 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 added.
The ministry described the development as part of efforts to convert policy objectives into measurable outcomes while resolving inherited obligations in a transparent and fiscally responsible manner.
It disclosed that the Federal Government has processed payments exceeding ₦700 billion in recent months across different 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,” the statement said.
The ministry said the approach of prioritising a large number of smaller contractors rather than a few major beneficiaries was designed to spread the economic benefits across sectors and regions.
It added that the latest payments would strengthen confidence among contractors, suppliers and service providers working with 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 reaffirmed its commitment to fiscal discipline while ensuring that legitimate obligations are settled promptly to reduce outstanding liabilities, strengthen confidence in public financial management and support the delivery of public services and infrastructure.
Faridah Abdulkadiri
