The Federal Ministry of Finance has approved payments to 1,240 contractors, thereby reinforcing the Federal Government’s commitment to meeting its financial obligations.
The payment approval by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, followed a diligent verification and reconciliation undertaken by the ministry to ensure that only duly validated obligations qualify for payment.
A statement from the ministry indicated that the payments covered contractors in Ministries, Departments and Agencies (MDAs) and represented a significant step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).
It added that contractors prioritised for payment in the most recent batch comprised those with verified claims of N100 million or less and that the release of funds was 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.
- Advertisement -
This development reflects the ministry’s commitment to translating policy objectives into tangible outcomes by resolving inherited obligations in a transparent and fiscally responsible manner.
Over the past few months, the Federal Government has processed payments exceeding N700 billion across various categories of verified obligations owed to local contractors. In May, approximately N436.6 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.
The latest payments are expected to strengthen confidence among contractors, suppliers, and service providers doing business with government by demonstrating the government’s commitment to honouring duly verified obligations.
For many beneficiaries, the release of funds represented more than a financial transaction but gave assurance of sustaining operations, preserving jobs, completing ongoing projects, and contributing to the government’s economic recovery and growth.
The ministry reaffirmed its commitment 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.
