The Ministry of Finance has approved settlement of debt owed by the Federal Government to more than 1,240 contractors.
Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, reportedly granted the approval.
As disclosed in a statement issued on Monday by the Senior Special Assistant on Communication and Press Secretary to the Minister, Mary-Ann Duke, the approval followef a verification and reconciliation undertaken by the Ministry to ensure that only duly validated obligations qualify for payment.
The payments covered contractors across various Ministries, Departments and Agencies (MDAs) and represent a significant step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).
Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less.
The ministry claimed that 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.
By prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the government said it is broadening the economic impact of these disbursements, supporting businesses across different sectors and regions of the country.
The latest payments are expected to strengthen confidence among contractors, suppliers, and service providers doing business with government by demonstrating the Government’s commitment to honouring duly 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 noted.
The Ministry noted that the move will substantially reduce outstanding liabilities over time, strengthen confidence in public financial management, and support the effective delivery of public services and infrastructure.