The Federal Government says it has processed payments exceeding ₦700 billion in verified obligations owed to local contractors over the past few months, including ₦436.6 billion disbursed in May alone.
The Federal Ministry of Finance disclosed this in a statement issued on Monday by its Director of Information and Public Relations, Efe Ovuakporie.
According to the ministry, payments have also been approved for more than 1,240 contractors across various Ministries, Departments and Agencies.
The approvals were granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following a verification and reconciliation exercise to ensure that only duly validated claims qualified for payment.
The ministry said the disbursements form part of efforts to clear inherited obligations, especially those affecting indigenous businesses and small and medium-sized enterprises.
“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.
It explained that contractors with verified claims of ₦100 million or less were prioritised in the latest batch of payments.
According to the ministry, the release of funds is expected to provide immediate relief to businesses by enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments and support economic activity across the country.
“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of ₦100m or less. 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 added.
The ministry said payment activities had accelerated significantly in recent months, with approximately ₦436.6 billion in transactions processed in May alone.
“Over the past few months, the Federal Government has processed payments exceeding ₦700bn across various categories of verified obligations owed to local contractors. Within the month of May alone, approximately ₦436.6bn in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth,” it stated.
The ministry noted that by prioritising a large number of smaller contractors rather than concentrating payments among a few major beneficiaries, the government was broadening the economic impact of the disbursements across sectors and regions.
It added that the latest payments would strengthen confidence among contractors, suppliers and service providers doing business with the government, while helping beneficiaries sustain operations, preserve jobs and complete ongoing projects.
The ministry reaffirmed the government’s commitment to fiscal discipline and the timely settlement of legitimate obligations, saying the approach would help reduce outstanding liabilities, strengthen confidence in public financial management and support the delivery of public services and infrastructure.
The development comes after reports that the Federal Government budgeted ₦1.7 trillion in the 2026 Appropriation Bill to settle outstanding debts owed to contractors for capital projects executed in 2024.
The post FG Clears Over ₦700bn Verified Debts To Local Contractors, Pays ₦436.6bn In May appeared first on TheNigeriaLawyer.
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