FG pays over 1,240 contractors as Finance Ministry clears verified obligations

The Federal Ministry of Finance has approved payments to more than 1,240 local contractors across various Ministries, Departments and Agencies (MDAs) in a renewed effort to inject liquidity into the economy and settle verified government obligations.

The approval, according to the ministry, followed a comprehensive verification and reconciliation exercise designed to ensure that only validated claims are processed for payment.

It said the beneficiaries are contractors executing federal projects across different sectors, including small and medium-sized enterprises (SMEs) and indigenous firms owed for completed or ongoing work.

In the latest disbursement, priority was given to contractors with verified claims of N100 million and below, a move officials said was aimed at spreading the economic impact across a wider pool of businesses rather than concentrating payments among large contractors.

The ministry explained that the intervention is expected to provide immediate relief to affected firms, enabling them to return to project sites, pay workers’ salaries, settle suppliers and meet other financial obligations.

In a statement issued by the Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, Mary-Ann Duke, the government said the initiative reflects its commitment to transparent and fiscally responsible settlement of inherited liabilities.

It added that over the past few months, the Federal Government has processed payments exceeding N700 billion in verified obligations owed to local contractors, with about N436.6 billion disbursed in May alone.

According to the ministry, the sustained payment drive is part of broader efforts to ease liquidity pressures, support business continuity, and strengthen confidence in public financial management systems.

It further noted that prioritising smaller contractors would help widen the distribution of economic benefits across sectors and regions, while also boosting job retention and project delivery nationwide.

The ministry expressed optimism that the latest payments would improve trust in government procurement processes and encourage stronger participation from private sector partners.

It reaffirmed its commitment to maintaining fiscal discipline while ensuring that legitimate and verified obligations are promptly settled to support economic stability and growth.