The federal government has approved payment to more than 1,240 contractors, providing immediate liquidity support to businesses across the country. The finance ministry noted its commitment to meeting its financial obligations in a statement on Monday.
It said the approval was granted by finance minister Taiwo Oyedele, following a diligent verification and reconciliation undertaken by the ministry to ensure that only duly validated obligations qualify for payment.
The payments covered contractors across various ministries, departments and agencies and represent a significant step in addressing long-standing payment obligations.
This, according to the government, particularly affects indigenous businesses and small and medium-sized enterprises.
The ministry said contractors prioritised for payment in the most recent batch were those with verified claims of N100 million or less.
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 workers, settle suppliers, meet financial commitments, and support economic activity across the country.
It said that this development reflects the ministry’s commitment to translating policy objectives into tangible outcomes by resolving inherited obligations in a transparent and fiscally responsible manner.
Over the past few months, the government processed payments exceeding N700 billion across various categories of verified obligations owed to local contractors, the ministry said.
It explained that in May alone, approximately N436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.
By prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the government was broadening the economic impact of these disbursements, the ministry stated.
She noted that it was also supporting businesses across different sectors and regions of the country.
It added that the latest payments are expected to strengthen confidence among contractors, suppliers, and service providers doing business with the government.
This, it said, demonstrated the government’s commitment to honouring duly verified obligations.

(NAN)