FG Clears 1,240 Contractors for Payment, Releases Funds to Boost Businesses

Segun Atanda/

The Federal Government has approved payments to more than 1,240 local contractors in a move aimed at injecting liquidity into businesses, stimulating economic activity, and reinforcing confidence in public financial management.

The approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, following a comprehensive verification and reconciliation exercise conducted by the Federal Ministry of Finance to ensure that only duly validated claims qualified for payment.

According to a statement issued by the Ministry on Monday, the payments cut across contractors engaged by various Ministries, Departments and Agencies (MDAs) and form part of efforts to clear long-standing obligations owed to indigenous firms and small and medium-sized enterprises (SMEs).

The Ministry disclosed that contractors with verified claims of ₦100 million or less were prioritised in the latest batch of payments, a strategy designed to spread the economic benefits across a wider segment of businesses rather than concentrating funds among a handful of large contractors.

It stated that the release of funds would provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments, and support economic activities nationwide.

The Ministry described the development as a demonstration of the Federal Government’s commitment to translating economic policies into tangible outcomes through the transparent and fiscally responsible settlement of inherited obligations.

It revealed that over the past few months, the Federal Government had processed payments exceeding ₦700 billion in verified obligations owed to local contractors. Of that amount, approximately ₦436.6 billion was disbursed in May alone, reflecting what it described as a significant acceleration in payment activities aimed at unlocking liquidity and supporting economic growth.

According to the statement, the broad-based payment strategy is expected to strengthen confidence among contractors, suppliers, and service providers who do business with government by assuring them that duly verified obligations will be honoured.

The Ministry noted that for many beneficiaries, the payments represent more than financial transactions, as they provide the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to national economic recovery and growth.

It reiterated its commitment to maintaining fiscal discipline while ensuring the timely settlement of legitimate obligations, with the goal of reducing outstanding liabilities, strengthening confidence in public financial management, and enhancing the delivery of public services and infrastructure across the country.