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Federal Government Approves Contractor Payments, Settles Over ₦700bn Verified Obligations
FG says over ₦700 billion in contractor obligations has been processed, with more than 1,240 local contractors receiving payments after a verification exercise.
The Federal Government has authorised payments to over 1,240 contractors after completing a verification process for outstanding claims owed by various government agencies.
The announcement was made by the Ministry of Finance in a statement signed by Efe Ovuakporie, Head of Information and Public Relations.
According to the ministry, the exercise forms part of efforts to clear verified debts, improve business liquidity and support economic growth across the country.
The payments cover contractors engaged by different Ministries, Departments and Agencies (MDAs), with particular attention given to those with verified claims not exceeding ₦100 million.
“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 ministry stated.
Officials said the payment programme was designed to ensure transparency and fiscal responsibility while addressing long-standing obligations owed to contractors.
The ministry disclosed that more than ₦700 billion in verified claims has been processed in recent months, including about ₦436.6 billion worth of transactions completed in May.
It explained that focusing on smaller contractors would help spread the economic impact of the disbursements, benefiting businesses across different industries and geographical locations.
The government also expressed optimism that the initiative would boost confidence among contractors, suppliers and other stakeholders by demonstrating its willingness to settle legitimate debts and support public infrastructure projects.
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