Bukola Afeni
The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations.
The development was announced in a statement on Monday by the Head of the Ministry’s Information and Public Relations Unit, Efe Ovuakporie, who said the approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, following a verification and reconciliation process to ensure that only validated claims qualified for payment.
According to the ministry, the payments cover contractors across various Ministries, Departments and Agencies (MDAs), with priority given in the latest batch to contractors with verified claims of ₦100 million or less.
The ministry said the disbursement is expected to provide immediate relief to hundreds of businesses by enabling them to return to project sites, pay workers, settle suppliers, meet financial obligations and support economic activities nationwide.
It noted that the payments form part of efforts to address long-standing obligations owed to indigenous businesses and small and medium-sized enterprises (SMEs) in a transparent and fiscally responsible manner.
The statement added that the Federal Government has processed more than ₦700 billion in verified payments to local contractors in recent months.
In May alone, about ₦436.6 billion in transactions were processed as part of efforts to improve liquidity and stimulate economic growth.
The ministry said prioritising a large number of smaller contractors over a few major beneficiaries would widen the economic impact of the disbursements across sectors and regions of the country.
It further stated that the latest payments are expected to strengthen confidence among contractors, suppliers and service providers by demonstrating the government’s commitment to honouring verified obligations.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the statement said.
The ministry reaffirmed its commitment to fiscal discipline while ensuring that legitimate obligations are settled promptly to reduce outstanding liabilities, strengthen public financial management and support the delivery of public services and infrastructure.
