FG Approves Payments to 1,240 Local Contractors, Moves to Clear Verified Debts Nationwide

The Federal Government has approved the payment of verified outstanding debts owed to more than 1,240 local contractors nationwide, in a move aimed at easing financial pressure on businesses and accelerating project delivery across various sectors.

According to the Federal Ministry of Finance, the approval followed a comprehensive verification and reconciliation exercise to ensure that only legitimate and validated claims qualified for payment. Contractors with verified claims of ₦100 million or less were prioritised in the latest batch of disbursements.

The Ministry stated that the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs) and are expected to provide immediate liquidity support to indigenous businesses and small and medium-sized enterprises (SMEs). Beneficiaries are expected to use the funds to return to project sites, pay workers, settle suppliers, and fulfil other financial obligations. 

Government records indicate that over ₦700 billion in verified contractor obligations have been processed in recent months, with approximately ₦436.6 billion disbursed in May alone as part of efforts to stimulate economic activity and strengthen public financial management.

Officials noted that prioritising smaller contractors would ensure that the economic benefits of the payments are spread across different sectors and regions of the country, while helping businesses preserve jobs and complete ongoing projects. 

The Federal Ministry of Finance reaffirmed its commitment to fiscal discipline, transparency, and the prompt settlement of verified obligations, stressing that the initiative would help rebuild confidence among contractors and other stakeholders doing business with government institutions.