Nigeria’s Federal Ministry of Finance has announced the approval of payments to more than 1,240 contractors across the country, in a move aimed at boosting liquidity and easing financial pressure on businesses executing government projects.
The approval, granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, followed a verification and reconciliation process designed to ensure that only legitimately confirmed obligations are settled.
According to the Ministry, the payments cut across various Ministries, Departments and Agencies (MDAs) and are part of efforts to address long-standing arrears owed to contractors, particularly local businesses and small and medium-scale enterprises.
Priority in the latest disbursement was given to contractors with verified claims of around ₦100 million and below, with the aim of spreading the economic impact more widely rather than concentrating payments among large beneficiaries.
Officials say the release of funds is expected to help contractors return to project sites, pay workers, settle suppliers, and stabilise ongoing operations, thereby stimulating broader economic activity.
The Ministry disclosed that over ₦700 billion has been processed in recent months for verified obligations, with about ₦436.6 billion paid out in May alone as part of an accelerated settlement plan.
It added that the initiative is intended to improve confidence in government contracting by ensuring that verified claims are paid promptly, while also supporting job retention and project completion across the country.
According to the statement, the government is balancing fiscal discipline with the need to clear outstanding liabilities, stressing that the exercise will help reduce accumulated debts over time and improve public financial management.
Officials further noted that the payments are expected to strengthen trust between government and contractors, while also contributing to economic stability by injecting liquidity into multiple sectors of the economy.
