The Federal Government has approved the payment of verified obligations to more than 1,240 local contractors in a move aimed at injecting liquidity into businesses and supporting economic activities across the country.
The approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, following a verification and reconciliation exercise conducted by the Federal Ministry of Finance to validate outstanding claims.
According to the ministry, the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs), with priority given to those with verified claims of N100 million or less.
The ministry said the disbursement is expected to provide immediate financial relief to hundreds of indigenous businesses and small and medium-sized enterprises (SMEs), enabling them to resume projects, pay workers, settle suppliers and meet other financial obligations.
The latest approval forms part of ongoing efforts by the government to address inherited payment obligations while maintaining transparency and fiscal responsibility in public financial management.
Data released by the ministry showed that the Federal Government has processed more than N700 billion in payments across different categories of verified obligations owed to local contractors in recent months.
It added that about N436.6 billion worth of transactions were processed in May alone, reflecting what it described as an acceleration of payment activities designed to unlock liquidity and stimulate economic growth.
The ministry noted that the decision to prioritise a large number of smaller contractors was intended to spread the economic benefits of the payments across sectors and regions rather than concentrating them among a few large beneficiaries.
It said the disbursements would help strengthen confidence among contractors, suppliers and service providers working with government by demonstrating its commitment to settling duly verified obligations.
According to the ministry, the payments will also help sustain business operations, preserve jobs, facilitate the completion of ongoing projects and contribute to broader economic recovery efforts.
The ministry reaffirmed its commitment to fiscal discipline while ensuring that legitimate obligations are settled in a timely manner to reduce outstanding liabilities, improve confidence in public financial management and support the delivery of public services and infrastructure.
Good production costs money and you can support what we do. Please find our details below👇🏾👇🏾👇🏾 Account name: MARKET ONLINE MEDIA Bank: UBA Acc No: 1026401930.
