THE Federal Ministry of Finance has approved payments to more than 1,240 local contractors in a move aimed at injecting liquidity into businesses, supporting project execution, and reinforcing the government’s commitment to settling verified financial obligations.
The approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following a comprehensive verification and reconciliation exercise conducted by the ministry to ensure that only duly validated claims qualified for payment.
According to the ministry, the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs) and represent a significant effort to address outstanding obligations owed to indigenous firms and small and medium-sized enterprises (SMEs).
In the latest batch of disbursements, priority was given to contractors with verified claims of N100 million or less. Officials said the decision was designed to spread the economic benefits of the payments across a wider range of businesses rather than concentrating funds among a small number of large contractors.
The release of the funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers’ salaries, settle outstanding obligations to suppliers, and meet other financial commitments.
In a statement by the Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, Mary-Ann Duke, the ministry said the initiative reflects the government’s commitment to translating policy objectives into tangible outcomes through the transparent and fiscally responsible resolution of inherited liabilities.
The statement disclosed that the government has, over the past few months, processed payments exceeding N700 billion across various categories of verified obligations owed to local contractors.
It further revealed that approximately N436.6 billion in transactions were processed in May alone, indicating a significant acceleration in payment activity intended to unlock liquidity within the economy and support business growth.
The ministry noted that prioritising payments to a large number of smaller contractors would help broaden the economic impact of the disbursements by supporting enterprises operating across different sectors and regions of the country.
Economic analysts say the move could improve cash flow for businesses that rely heavily on government contracts and enhance confidence among contractors, suppliers and service providers working with public institutions.
The ministry expressed optimism that the latest payments would strengthen trust in government procurement and financial management processes by demonstrating the administration’s willingness to honour duly verified obligations.
“For many beneficiaries, the release of funds represents more than a financial transaction,” the statement said. “It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth.”
The ministry reaffirmed its commitment to maintaining fiscal discipline while ensuring that legitimate obligations are settled promptly. It added that ongoing efforts to reduce outstanding liabilities would strengthen confidence in public financial management and support the effective delivery of infrastructure and public services nationwide.
