Nigeria Govt Approves Payment to 1,240 Contractors as Finance Ministry Clears Over N700bn Verified Debts
The Federal Government has approved the disbursement of payments to 1,240 contractors operating across ministries, departments, and agencies, with priority given to verified outstanding claims not exceeding N100 million.
PulseNets learned that the approval followed a structured verification and reconciliation process aimed at validating all outstanding obligations before settlement.
In a statement released on Monday, Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, Taiwo Oyedele, confirmed that the exercise was designed to ensure accuracy in debt profiling and payment execution.
Duke explained that the decision is intended to inject immediate liquidity into the private sector while reinforcing government credibility in honouring financial commitments.
The Ministry of Finance stated that the disbursements will provide relief to indigenous contractors, small and medium-scale enterprises, and service providers, enabling them to return to project sites, meet payroll obligations, and settle suppliers.
According to the ministry, over N700 billion in verified obligations owed to local contractors has been processed in recent months, with about N436.6 billion handled in May alone, reflecting a sharp increase in payment momentum.
The ministry further noted that the prioritisation of smaller contractors is a strategic move to distribute economic impact across regions and sectors, sustain ongoing projects, preserve employment, and reduce project abandonment risks.
It added that the ongoing payments are expected to strengthen confidence among contractors, suppliers, and service providers engaged in federal projects nationwide.
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In January, tensions had escalated when local contractors blocked the Minister of State for Finance, Doris Uzoka-Anite, from accessing the ministry. Six months later, the Senate constituted a panel to engage the finance ministry over outstanding contractor debts, underscoring growing legislative scrutiny of the issue.
The development signals a renewed push by the federal government to stabilise contractor relations and address long-standing payment arrears across MDAs.
