In a major push to inject liquidity into the business sector and fulfill its financial promises, the Federal Ministry of Finance has cleared payments for more than 1,240 local contractors across Nigeria.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, approved the disbursements after a strict verification and reconciliation exercise to ensure only legitimate claims were processed.
The initiative specifically targets contractors hired by various Ministries, Departments, and Agencies (MDAs). It marks a decisive effort to settle long-standing government debts, with a strong focus on supporting indigenous businesses and small and medium-sized enterprises (SMEs).
To ensure a widespread economic impact rather than concentration among a few large firms, this payout batch prioritizes contractors with verified claims of ₦100 million or less.
Officials noted that this capital injection will offer immediate relief, allowing hundreds of business owners to return to project sites, pay staff, settle supplier debts, and reactivate local economic supply chains.
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According to the ministry, the Federal Government has cleared over ₦700 billion in verified local contractor debts over the last few months. A significant portion of this effort occurred in May alone, when approximately ₦436.6 billion in transactions were processed, signaling a major acceleration in government payment activities.
By spreading these disbursements across a large pool of smaller contractors, the government aims to distribute the economic benefits across multiple regions and economic sectors.
The ministry noted that this move is designed to restore trust among contractors, suppliers, and service providers, proving that the government will honor its validated financial commitments.
For the affected businesses, the ministry emphasized that this intervention goes beyond a standard financial transaction.
The funds will provide the financial predictability required to sustain operations, protect jobs, wrap up ongoing infrastructure projects, and support broader national economic recovery.
Reaffirming its dedication to fiscal discipline, the Federal Ministry of Finance stated that the ongoing payment framework is part of a larger strategy to drastically lower public liabilities, boost trust in public financial management, and ensure the steady delivery of public services and infrastructure nationwide.
