The federal ministry of finance says it has approved payments to more than 1,240 contractors across ministries, departments and agencies (MDAs).
In a statement on Monday, Mary-Ann Duke, senior special assistant on communication and press secretary to the minister of finance, said the approval followed a verification and reconciliation exercise to validate outstanding obligations.
Duke said contractors with verified claims of N100 million or less were prioritised in the latest batch of payments.
“The Federal Ministry of Finance has approved payments to more than 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 statement reads.
The ministry said the payments would provide relief to indigenous businesses and small and medium-sized enterprises (SMEs), enabling them to return to project sites, pay workers and settle suppliers.
“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less,” Duke said.
The ministry added that the federal government has processed more than N700 billion in verified obligations owed to local contractors in recent months.
The statement said within the month of May alone, approximately N436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.
According to the ministry, prioritising smaller contractors is intended to spread the impact of the disbursements across sectors and regions, while helping businesses sustain operations, preserve jobs and complete ongoing projects.
The ministry said the latest payments are also expected to boost confidence among contractors, suppliers and service providers doing business with the government.
In January, local contractors prevented Doris Uzoka-Anite, the former minister of state for finance, from accessing the ministry.
Six months later, the senate constituted a panel to engage the finance ministry on debts owed to contractors.