Over ₦700 billion paid to verified contractors as government moves to ease cash flow pressures, revive projects, and boost business confidence……
The Federal Government has approved payments to more than 1,240 contractors in a move aimed at injecting fresh liquidity into the economy, supporting businesses, and accelerating the completion of public projects across the country.
The latest disbursement, approved by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, follows an extensive verification and reconciliation exercise conducted by the Federal Ministry of Finance to validate outstanding obligations owed to contractors.
According to a statement issued on Monday by the Ministry’s Senior Special Assistant on Communication and Press Secretary, Mary-Ann Duke, the exercise was designed to ensure that only legitimate and verified claims qualified for payment.
The approved payments cover contractors working across several Ministries, Departments, and Agencies (MDAs), with particular attention given to indigenous firms and small and medium-sized enterprises (SMEs) that have faced prolonged delays in receiving funds for completed projects and services rendered.
As part of the latest phase, the government prioritised contractors with verified claims of ₦100 million or less, a strategy intended to spread the impact of the intervention across a wider segment of the business community.
Officials believe the release of funds will provide immediate financial relief for hundreds of companies, enabling them to resume stalled projects, pay workers’ salaries, settle outstanding obligations to suppliers, and improve overall business operations.
The Ministry disclosed that more than ₦700 billion has been paid out to local contractors in recent months as part of efforts to clear verified obligations and strengthen economic activity.
A significant portion of that amount was processed in May alone, with transactions worth approximately ₦436.6 billion completed during the month, underscoring what officials described as an accelerated drive to unlock liquidity within the economy.
The government said its decision to prioritise a large number of smaller contractors, rather than concentrating payments among a handful of major beneficiaries, is expected to generate broader economic benefits across multiple sectors and regions.
Beyond the immediate financial impact, the payments are also expected to improve confidence among businesses that engage with government institutions, reassuring contractors and service providers that verified obligations will be honoured.
The Ministry noted that for many beneficiaries, the payments represent more than the settlement of outstanding invoices. They provide the financial certainty needed to sustain operations, protect jobs, complete ongoing projects, and contribute to economic growth.
It added that while maintaining fiscal discipline remains a priority, efforts will continue to ensure that legitimate obligations are settled promptly and transparently.
The government expressed confidence that sustained payment of verified liabilities will help reduce outstanding debt obligations over time, strengthen public financial management, and improve the delivery of infrastructure and essential public services nationwide.
