The federal government says it has cleared over N700 billion in verified debts owed to local contractors with priority for contractors holding claims of N100 million or less in the latest round of disbursements.
In a statement issued on Monday, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, Mary-Ann Duke, said the approvals followed a comprehensive verification and reconciliation exercise to authenticate outstanding contractor claims.
According to the statement, the move is expected to provide a cash flow boost to indigenous businesses and small and medium-sized enterprises (SMEs), enabling them to resume stalled projects, pay workers, and meet obligations to suppliers.
The federal government explained that contractors with verified claims of N100 million or less were given priority in the latest batch of payments to ensure that smaller businesses benefit quickly from the intervention.
It said payments were approved for over 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations.
The ministry disclosed that approximately N436.6 billion in verified transactions were processed in May alone, reflecting a significant acceleration in efforts to settle outstanding obligations.
It added that the payment programme is designed to support businesses across sectors and regions, helping contractors sustain operations, preserve jobs, and complete ongoing government projects.
The ministry further noted that the initiative would strengthen confidence among contractors, suppliers, and service providers engaged in government business.
