Finance Ministry says disbursements will support SMEs, preserve jobs, revive projects, and strengthen confidence in government contracts.
The Federal Government has approved payments to more than 1,240 contractors across the country as part of efforts to inject liquidity into businesses and fulfil outstanding financial obligations owed to service providers and project contractors.
The approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following a comprehensive verification and reconciliation exercise carried out by the Federal Ministry of Finance.
According to a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister, the exercise was designed to ensure that only duly verified claims qualified for payment.
The Ministry said the payments cover contractors working with various Ministries, Departments and Agencies (MDAs), describing the move as a significant step toward addressing long-standing obligations owed by the government, particularly to indigenous businesses and small and medium-sized enterprises (SMEs).
It noted that contractors with verified claims of ₦100 million or less were prioritised in the latest round of payments.
According to the statement, the release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay salaries, settle suppliers, meet financial commitments, and contribute to economic activity nationwide.
The Ministry disclosed that over the past few months, the Federal Government has processed payments exceeding ₦700 billion in verified obligations owed to local contractors.
It added that approximately ₦436.6 billion worth of transactions were processed in May alone, reflecting a significant increase in payment activity aimed at stimulating economic growth and improving cash flow within the private sector.
The government said its decision to prioritise a large number of smaller contractors rather than concentrating payments among a few major beneficiaries would help spread the economic benefits across different sectors and regions of the country.
According to the Ministry, the latest disbursements are expected to strengthen confidence among contractors, suppliers, and service providers engaged in government projects by demonstrating the administration’s commitment to honouring verified obligations.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth,” the statement said.
The Ministry reaffirmed its commitment to maintaining fiscal discipline while ensuring that legitimate obligations are settled promptly.
It added that the ongoing payment process would help reduce outstanding liabilities, improve public financial management, and support the effective delivery of infrastructure and public services across the country.