The Federal Government has approved payments to more than 1,240 contractors across various Ministries, Departments and Agencies (MDAs), in a move aimed at easing financial pressure on businesses and accelerating project delivery nationwide.
The approval followed a comprehensive verification and reconciliation exercise conducted by the Federal Ministry of Finance to validate outstanding debts owed to contractors.
According to a statement issued by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, contractors with verified claims of N100 million or less were given priority in the latest round 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,” the statement said.
The ministry explained that the intervention is designed to support indigenous businesses and small and medium-sized enterprises (SMEs), many of which have struggled with delayed payments while executing government projects.
Officials said the payments will enable affected contractors to return to project sites, settle outstanding obligations to suppliers, pay workers, and sustain business operations.
The statement revealed that the Federal Government has processed more than N700 billion in verified obligations owed to local contractors in recent months.
In addition, about N436.6 billion worth of transactions were reportedly processed in May 2026 alone, reflecting what the ministry described as a significant acceleration in efforts to clear outstanding debts.
According to the government, prioritising smaller contractors is intended to spread the benefits of the payments across multiple sectors and regions while helping businesses preserve jobs and complete ongoing projects.
The ministry also expressed confidence that the latest disbursement would improve trust between the government and contractors, suppliers, and service providers working on public projects.
The development comes months after local contractors protested over unpaid debts, while the Senate later intervened by setting up a panel to engage the Ministry of Finance on outstanding obligations owed to contractors nationwide.
Government officials say the ongoing payments form part of broader efforts to stimulate economic activity, improve liquidity in the private sector, and ensure that critical infrastructure projects are completed without unnecessary delays.
Source: Federal Ministry of Finance.
