FG approves payments to 1,240 contractors, prioritises claims below N100m

The Federal Government has approved payments to more than 1,240 contractors across various Ministries, Departments and Agencies (MDAs), following a verification and reconciliation exercise aimed at validating outstanding obligations.

This was disclosed in a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance.

According to the statement, 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 and reinforcing the Federal Government’s commitment to meeting its financial obligations,” the statement said.

The ministry noted that the payments would provide much-needed relief to indigenous businesses and small and medium-sized enterprises (SMEs), enabling them to return to project sites, pay workers and settle suppliers.

Duke explained that the decision to prioritise smaller claims was intended to ensure that the impact of the disbursements is felt across different sectors and regions of the country.

The ministry further revealed that the Federal Government has processed more than N700 billion in verified obligations owed to local contractors in recent months.

It added that approximately N436.6 billion in transactions were processed in May alone, reflecting a significant increase in payment activity aimed at boosting liquidity and supporting economic growth.

According to the statement, the payments are expected to help businesses sustain operations, preserve jobs and complete ongoing projects while also restoring confidence among contractors, suppliers and service providers working with the government.

The development comes months after local contractors protested unpaid debts by preventing the former Minister of State for Finance, Doris Uzoka-Anite, from accessing the ministry in January.

Six months later, the Senate constituted a panel to engage the Ministry of Finance over outstanding debts owed to contractors.