Finance Minister Approves Payment of Over N700b to 1,240 Local Contractors
The Federal Ministry of Finance has approved payments to more than one thousand, two hundred and forty contractors, in a move to provide liquidity support for businesses across the country.
The Minister of Finance and Coordinating Minister of the Economy, TAIWO OYEDELE, said the payments were approved following a diligent verification and reconciliation exercise undertaken by the Ministry.
OYEDELE said the payments cover contractors across various Ministries, Departments and Agencies, and it represents a significant step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises.
Details of the payments were made known in a statement by MARY-ANN DUKE; the Senior Special Assistant on Communication and Press Secretary to the Honorable Minister of Finance and Coordinating Minister of the Economy.
According to the statement, the Finance Minister said contractors considered for payment in the most recent batch are those with verified claims in the region of One Hundred Million Naira or less.
TAIWO OYEDELE said the released 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.
OYEDELE said the development reflects the Finance Ministry's commitment to translating policy objectives into tangible outcomes by resolving inherited obligations in a transparent and fiscally responsible manner.
The statement further disclosed that over past few months, the Federal Government had processed payments exceeding Seven Hundred Billion Naira across various categories of verified obligations owed to local contractors.
“Within the month of May alone, approximately ₦436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth’ the Minister’s media aide stated.
She noted that “by prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the Government is broadening the economic impact of these disbursements, supporting businesses across different sectors and regions of the country.
“The latest payments are expected to strengthen confidence among contractors, suppliers, and service providers doing business with government by demonstrating the Government's commitment to honouring duly 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 Ministry remains committed to maintaining fiscal discipline while ensuring that legitimate obligations are settled in a timely manner going forward to substantially reduce outstanding liabilities over time, strengthen confidence in public financial management, and support the effective delivery of public services and infrastructure.