The Federal Government has approved payments to more than 1,240 local contractors in a move aimed at boosting liquidity, supporting small and medium-sized enterprises (SMEs), and accelerating economic activity across Nigeria.
The approval, granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, follows a comprehensive verification and reconciliation process to ensure that only validated obligations are settled.
According to a statement signed by Efe Ovuakporie on Monday, the payments cut across contractors engaged by various Ministries, Departments and Agencies (MDAs), marking a significant step toward clearing long-standing government liabilities.
Contractors with verified claims of ₦100 million or less were prioritised in the latest disbursement, a move expected to provide immediate financial relief to hundreds of indigenous businesses.
The release of funds is projected to enable contractors to return to project sites, pay workers, settle suppliers, and meet other financial obligations, thereby stimulating economic activity nationwide.
The Ministry noted that the decision to prioritise smaller contractors rather than concentrating payments among a few large firms is designed to broaden the economic impact and support businesses across multiple sectors and regions.
Over the past few months, the Federal Government has processed payments exceeding ₦700 billion in verified obligations owed to contractors, with about ₦436.6 billion disbursed in May alone, reflecting an accelerated effort to unlock liquidity in the economy.
The development is also expected to strengthen confidence among contractors and service providers working with government, as it demonstrates a renewed commitment to honouring verified financial obligations.
Officials said the initiative goes beyond routine payments, as it provides businesses with the financial certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to national economic recovery.
The Ministry reaffirmed its commitment to maintaining fiscal discipline while ensuring timely settlement of legitimate obligations, with the broader goal of reducing outstanding liabilities, improving public financial management, and enhancing infrastructure delivery across the country.
