By Innocent Anaba

The Federal Government, through the Ministry of Finance, has approved payments to more than 1,240 local contractors as part of efforts to settle verified obligations and inject liquidity into businesses across the country.

The approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, following what the ministry described as a comprehensive verification and reconciliation exercise to ensure that only duly validated claims were processed for payment.

According to a statement on Monday by the Senior Special Assistant on Communication and Press Secretary to the Minister, Mary-Ann Duke, the payments cut across contractors engaged by various Ministries, Departments and Agencies, MDAs, and are expected to provide significant relief to indigenous businesses, particularly small and medium-sized enterprises, SMEs.

The statement explained that contractors with verified claims of N100 million and below were prioritised in the latest batch of payments.

It noted that the release of funds would enable affected businesses to return to project sites, pay workers’ salaries, settle suppliers, meet other financial obligations and stimulate economic activities nationwide.
“The payments represent a significant step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and SMEs,” the statement said.

The ministry disclosed that over the past few months, the Federal Government had processed payments exceeding N700 billion in verified obligations owed to local contractors.

It further revealed that approximately N436.6 billion worth of transactions were processed in May alone, describing the development as a major acceleration in efforts to unlock liquidity within the economy and support growth.

According to the ministry, the decision to prioritise a large number of smaller contractors rather than a few major beneficiaries is aimed at broadening the economic impact of government disbursements across sectors and regions of the country.

The statement added that the latest payments would strengthen confidence among contractors, suppliers and service providers working with government by demonstrating its commitment to honouring legitimate and verified obligations.

It stressed that beyond the financial benefits, the disbursement would help many businesses sustain operations, preserve jobs, complete ongoing projects and contribute to economic recovery.

The ministry reaffirmed its commitment to fiscal discipline while ensuring that legitimate obligations are settled promptly, noting that the approach would help reduce outstanding liabilities, strengthen public financial management and support the delivery of critical infrastructure and public services.