FG Okays Over N700bn For 1,240 Local Contractors

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ABUJA – The Federal Ministry of Finance has approved more than N700 billion in payments to more than 1,240 local contrac­tors, providing immediate liquid­ity support to businesses across the country and reinforcing the Federal Government’s commit­ment to meeting its financial obligations.

According to a statement signed by Efe Ovuakporie, on Monday, the approval, granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, follows a diligent verification and reconciliation undertaken by the ministry to ensure that only duly validated obligations qualify for payment.

The payments cover contrac­tors across various Ministries, De­partments and Agencies (MDAs) and represent a significant step in addressing long-standing payment obligations, particu­larly those affecting indigenous businesses and small and medi­um-sized enterprises (SMEs).

Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less. 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.

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 Federal Government has processed payments exceeding N700 billion across various cat­egories of verified obligations owed to local contractors.

Within the month of 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 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.