Nigerian govt clears payments for 1,240 contractors, prioritises claims under N100m

The Federal Ministry of Finance has approved payments to more than 1,240 contractors across ministries, departments and agencies (MDAs) as part of efforts to settle verified government obligations and ease pressure on businesses.

In a statement issued on Monday, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, Ms Mary-Ann Duke, said the approvals followed a verification and reconciliation exercise carried out to validate outstanding claims.

The ministry said contractors with verified claims of N100 million or less were prioritised in the latest round of disbursements in a move aimed at supporting smaller businesses and improving liquidity across sectors.

“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 payments are expected to help indigenous firms as well as small and medium-sized enterprises (SMEs) return to project sites, meet obligations to suppliers and pay workers.Nigerian govt According to the ministry, the payments are expected to help indigenous firms as well as small and medium-sized enterprises (SMEs) return to project sites, meet obligations to suppliers and pay workers.

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Duke stated that the latest batch of payments focused largely on smaller verified claims. “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 statement added that the Nigerian government has processed more than N700 billion in verified obligations owed to local contractors in recent months.

It also disclosed that transactions valued at about N436.6 billion were processed in May alone, reflecting what the ministry described as a sharp increase in payment activity intended to stimulate liquidity and support economic growth.

The ministry explained that prioritising smaller contractors was designed to spread the impact of the payments across regions and sectors while helping businesses maintain operations, preserve jobs and complete ongoing projects.

It added that the latest disbursements are expected to improve confidence among contractors, suppliers and service providers doing business with the Nigerian government.

In January, local contractors prevented former Minister of State for Finance, Dr Doris Uzoka-Anite, from entering the ministry over unpaid obligations.

Six months later, the Senate set up a panel to engage the finance ministry on outstanding debts owed to contractors.