The Federal Government has approved payments to more than 1,240 contractors across ministries, departments and agencies (MDAs) following a verification and reconciliation exercise on outstanding obligations.
The development was confirmed in a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance.
“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.
According to the ministry, the latest payment cycle prioritises contractors with verified claims of N100 million and below. Officials said the approach is intended to widen the distribution of payments and ease pressure on smaller businesses handling government projects.
Duke noted that the disbursement follows a verification process meant to confirm legitimate outstanding debts owed by federal agencies.
“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less,” she said.
The ministry added that the payments are expected to improve cash flow for indigenous firms, particularly small and medium-sized enterprises (SMEs), enabling them to resume work, pay staff, and settle suppliers.
It also disclosed that more than N700 billion in verified obligations to local contractors has been processed in recent months. In May alone, about N436.6 billion was handled, reflecting a faster pace of settlements.
Officials said the strategy of prioritising smaller claims is aimed at spreading the impact of disbursements across sectors and regions while sustaining ongoing projects and job retention.
The ministry further stated that improved payment timelines are expected to strengthen confidence among contractors and service providers engaged with federal institutions.
