FG approves payments to 1,240 contractors, processes over N700bn claims

By Emma Ujah, Abuja Bureau Chief

ABUJA — The Federal Government has approved payments to more than 1,240 local contractors as part of efforts to settle verified outstanding obligations and support business activities across the country.

The development was disclosed in a statement issued by the Ministry of Finance and signed by the Head of Information and Public Relations, Efe Ovuakporie.

According to the ministry, the payments followed a verification and reconciliation process aimed at ensuring that only validated claims qualified for settlement.

The statement said the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs) and are expected to provide liquidity support to businesses, particularly indigenous firms and small and medium-sized enterprises (SMEs).

It noted that contractors with verified claims of up to ₦100 million were prioritised in the latest round of disbursements.

“The release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments and support economic activity across the country,” the statement said.

The ministry added that the initiative reflects the government’s commitment to addressing outstanding obligations in a transparent and fiscally responsible manner.

According to the statement, the Federal Government has processed payments exceeding ₦700 billion in verified obligations owed to local contractors in recent months.

It further disclosed that about ₦436.6 billion in transactions were processed in May alone, representing a significant increase in payment activity.

The ministry said the strategy of prioritising a large number of smaller contractors is intended to broaden the economic impact of the disbursements by supporting businesses across different sectors and regions.

It expressed confidence that the payments would strengthen trust among contractors, suppliers and service providers by demonstrating the government’s commitment to meeting verified obligations.

The statement added that the ministry remains committed to maintaining fiscal discipline while ensuring that legitimate claims are settled promptly, reducing outstanding liabilities and supporting the delivery of public services and infrastructure projects.

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