FG approves debt payments to 1,240 contractors, prioritises claims below N100m

The Federal Ministry of Finance has officially approved payments to more than 1,240 local contractors across various Ministries, Departments, and Agencies (MDAs).

The announcement was made on Monday by the Senior Special Assistant on Communication and press secretary to the minister of finance, Mary-Ann Duke.

She confirmed that the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, authorized the disbursements following a strict verification and reconciliation exercise to ensure only validated obligations are settled.

According to her, contractors with verified claims of N100 million or less were prioritised in the latest batch of payments.

“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 reads.

The ministry said the payments would provide relief to indigenous businesses and small and medium-sized enterprises (SMEs), enabling them to return to project sites, pay workers and settle suppliers.

“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less,” Duke said.

The ministry added that the federal government has processed more than N700 billion in verified obligations owed to local contractors in recent months.

The statement said 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.

According to the ministry, prioritising smaller contractors is intended to spread the impact of the disbursements across sectors and regions, while helping businesses sustain operations, preserve jobs and complete ongoing projects.

The ministry said the latest payments are also expected to boost confidence among contractors, suppliers and service providers doing business with the government.

“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 Ministry remains committed to maintaining fiscal discipline while ensuring that legitimate obligations are settled in a timely manner going forward to substantially reduce outstanding liabilities over time, strengthen confidence in public financial management, and support the effective delivery of public services and infrastructure,” the statement concluded.

This comes after local contractors protested the non-payment of debts amounting to N4 trillion since 2024.

On several occasions, contractors barricaded the Ministry of Finance over the prolonged delay in settling the debts.

In January, local contractors prevented Doris Uzoka-Anite, the former minister of state for finance, from accessing the ministry.

Six months later, the senate constituted a panel to engage the finance ministry on debts owed to contractors.