The Federal Government has approved the payment of outstanding fees to more than 1,240 contractors for various projects executed across the country.
According to a statement released on Monday by the Federal Ministry of Finance, the approval covers contractors working with different Ministries, Departments, and Agencies (MDAs).
The statement, signed by the Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, Taiwo Oyedele, Mary-Ann Duke, disclosed that contractors with outstanding payments of less than ₦100 million were given priority consideration.
It noted that the approvals followed a thorough verification and reconciliation process to confirm legitimate outstanding obligations.
The development, as gathered by Naija News, is part of efforts by the government to address legacy debts, ease cash flow challenges for businesses, and enhance transparency in public financial management.
“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.
“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of ₦100 million or less,” the statement read in part.
The Ministry explained that the payments would offer relief to indigenous businesses and small and medium-sized enterprises (SMEs), enabling them to return to project sites, pay workers, and settle suppliers.
It further revealed that in the month of May alone, approximately ₦436.6 billion in transactions were processed, reflecting a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.
According to the Ministry, prioritising smaller contractors is designed to spread the impact of the disbursements across sectors and regions, while helping businesses sustain operations, preserve jobs, and complete ongoing projects.
The latest payments are also expected to boost confidence among contractors, suppliers, and service providers engaged with the government.
The development comes months after protests by contractors under the aegis of the All Indigenous Contractors Association of Nigeria, who decried prolonged delays in payment for executed contracts.
The group had vowed to sustain demonstrations nationwide until the government settles all outstanding obligations, which it estimated at about ₦4.7 trillion.
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