FG Approves Payments for 1,240 Contractors as Over ₦700bn Debts Cleared to Boost Nigerian Businesses

Thousands of Nigerian contractors are set to receive long-awaited payments after the Federal Government approved fresh disbursements aimed at easing liquidity pressure on businesses and reviving stalled projects across the country.

The Federal Ministry of Finance confirmed that payments have now been approved for more than 1,240 contractors following a verification exercise designed to clear genuine outstanding obligations owed by government agencies.

According to a statement issued by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, the approval was granted by Taiwo Oyedele after months of reconciliation and validation processes.

The ministry explained that the payments cover contractors working with different Ministries, Departments and Agencies (MDAs), with priority given to verified claims valued at ₦100 million or less. Officials said the decision was aimed at supporting indigenous contractors and small and medium-sized businesses struggling with delayed government payments.

Authorities disclosed that over ₦700 billion has already been processed in recent months to settle verified obligations owed to local contractors nationwide. Within May alone, transactions worth about ₦436.6 billion were reportedly cleared as part of efforts to inject liquidity into the economy and restore confidence in public financial management.

The government believes the latest payments will allow contractors to return to abandoned project sites, pay salaries, settle suppliers and fulfill financial obligations that have piled up due to delayed disbursements.

Unlike previous payment structures that often favoured a small number of large firms, the ministry said the current approach focuses on spreading payments across a wider number of smaller contractors to create broader economic impact across different sectors and regions.

Officials also argued that settling verified debts promptly would improve trust between contractors and the government while helping businesses maintain operations during a period of economic strain and rising operational costs.

The Ministry of Finance added that it remains committed to balancing fiscal discipline with the need to settle legitimate debts, stressing that the gradual clearance of outstanding liabilities is necessary to strengthen economic growth, support infrastructure delivery and improve confidence in government transactions.