By Monsurat Abisoye
The Federal Government has processed payments exceeding N700 billion in verified obligations owed to local contractors over the past few months, including N436.6 billion disbursed in May alone, as part of efforts to settle long-standing debts and stimulate economic activity.
This was disclosed by the Federal Ministry of Finance in a statement issued on Monday by its Director of Information and Public Relations, Efe Ovuakporie. The ministry revealed that payments had also been approved for more than 1,240 contractors across various Ministries, Departments and Agencies (MDAs).
According to the ministry, the approvals were granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following a comprehensive verification and reconciliation exercise aimed at ensuring that only duly validated claims qualified for payment.
The ministry said the latest disbursements mark a significant step toward resolving inherited payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).
“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 statement said.
It explained that contractors with verified claims of N100 million or less were prioritised in the most recent batch of payments.
According to the ministry, 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 nationwide.
“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less. 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 statement added.
The ministry described the development as part of the Federal Government’s broader commitment to resolving inherited liabilities in a transparent and fiscally responsible manner while ensuring that policy objectives translate into tangible outcomes for businesses and citizens.
It further disclosed that payment activities have accelerated significantly in recent months, with approximately N436.6 billion in transactions processed in May alone.
“Over the past few months, the Federal Government has processed payments exceeding N700 billion across various categories of verified obligations owed to local contractors. Within the month of May alone, approximately N436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth,” the ministry stated.
The ministry noted that by prioritising a large number of smaller contractors rather than concentrating payments among a few major beneficiaries, the government is broadening the economic impact of the disbursements across different sectors and regions.
It added that the latest payments will strengthen confidence among contractors, suppliers, and service providers doing business with the government while helping beneficiaries sustain operations, preserve jobs, and complete ongoing projects.
The ministry reaffirmed its commitment to fiscal discipline and the timely settlement of legitimate obligations, stating that the approach would help reduce outstanding liabilities, strengthen confidence in public financial management, and support the delivery of public services and infrastructure across the country.
