The Federal Government has approved the release of payments to more than 1,240 contractors engaged by various Ministries, Departments and Agencies (MDAs), as part of efforts to settle outstanding obligations and support business activities across the country.
The development was disclosed in a statement issued by the Federal Ministry of Finance through the Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, Mary-Ann Duke.
According to the ministry, contractors with verified outstanding claims below ₦100 million were given priority in the latest round of approvals following an extensive verification and reconciliation exercise.
The government explained that the initiative is aimed at addressing inherited payment obligations, improving liquidity within the private sector, and strengthening confidence in public sector financial management.
The statement noted that the approved payments are expected to provide immediate financial relief to contractors, particularly indigenous firms and small and medium-sized enterprises (SMEs), many of which have faced operational difficulties due to delayed settlements.
The ministry further revealed that approximately ₦436.6 billion worth of transactions were processed in May alone, reflecting a significant increase in payment activities designed to stimulate economic growth and enhance business sustainability.
Officials stated that prioritising smaller-value claims would ensure wider economic impact across different sectors and regions, while enabling contractors to resume project execution, settle outstanding obligations to suppliers, and meet staff salary commitments.
The government expressed confidence that the payment initiative would strengthen trust between public institutions and service providers, while encouraging the timely completion of ongoing infrastructure and development projects.
The announcement comes amid longstanding concerns by contractors over unpaid government obligations. Earlier this year, members of the All Indigenous Contractors Association of Nigeria (AICAN) staged protests, alleging that delayed payments had exposed many businesses to severe financial difficulties, including loan defaults and the loss of assets to creditor institutions.
The association had previously estimated the total value of outstanding payments owed to contractors at about ₦4.7 trillion and called on the government to expedite the settlement process.
The latest approval is expected to provide some relief to affected contractors and contribute to improved business confidence in government-funded projects.
