THE Federal Ministry of Finance has approved payments to more than 1,240 contractors in a move aimed at providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations.
News Point Nigeria reports that the approval was granted by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following what the ministry described as a rigorous verification and reconciliation process designed to ensure that only duly validated obligations qualified for payment.
According to the ministry, the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs) and represent a major step toward addressing long-standing payment obligations owed by the Federal Government, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).
The latest batch of payments prioritises contractors with verified claims of ₦100 million or less, reflecting the government’s effort to support a broad spectrum of businesses rather than concentrating resources among a limited number of large beneficiaries.
Officials said the release of the funds is expected to provide immediate relief to hundreds of businesses across the country, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments and stimulate economic activities in their respective sectors.
The development, according to the ministry, underscores its determination to translate policy objectives into tangible economic outcomes through the transparent and fiscally responsible resolution of inherited obligations.
The ministry noted that over the past several months, the Federal Government has processed payments exceeding ₦700 billion across different categories of verified obligations owed to local contractors.
It further disclosed that within the month of May alone, approximately ₦436.6 billion in transactions were processed, highlighting what it described as a significant acceleration in payment activities aimed at unlocking liquidity, stimulating business operations and supporting economic growth.
By prioritising a large number of smaller contractors, the government said it is expanding the economic impact of the disbursements across multiple sectors and regions of the country, ensuring that more businesses benefit from the intervention.
The ministry added that the latest round of payments is expected to strengthen confidence among contractors, suppliers and service providers engaged in government business by demonstrating a clear commitment to honouring duly verified obligations.
For many beneficiaries, the release of the funds is expected to represent more than a routine financial transaction.
According to the ministry, the payments will provide businesses with the certainty needed to sustain operations, preserve jobs, complete ongoing projects and contribute meaningfully to economic recovery and growth.
The Federal Ministry of Finance reaffirmed its commitment to maintaining fiscal discipline while ensuring that legitimate obligations are settled promptly and responsibly.
It stressed that the ongoing payment programme forms part of broader efforts to substantially reduce outstanding liabilities, strengthen confidence in public financial management and support the effective delivery of public services and infrastructure across the country.
The ministry added that it would continue to pursue prudent financial management practices while working to ensure that verified obligations are settled in a timely manner, thereby supporting businesses, enhancing economic stability and fostering sustainable growth.