The Federal Ministry of Finance has approved payments to more than 1,240 local contractors as part of ongoing efforts to ease liquidity constraints and stimulate economic activity across the country.
The approval, announced on Monday, followed a verification and reconciliation exercise aimed at ensuring that only validated claims are processed for payment. According to the ministry, contractors across various ministries, departments and agencies are covered in the latest disbursement.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, approved the payments, with priority given to businesses with verified claims of ₦100 million and below. Officials said the approach was designed to spread the impact widely, particularly among smaller contractors.
“For many beneficiaries, the release of funds represents more than a financial transaction,” the ministry said in a statement. “It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth.”
The payments form part of a broader government effort to clear outstanding contractor obligations. According to the ministry, more than ₦700 billion in verified claims have been processed in recent months.
In May alone, approximately ₦436.6 billion was disbursed as part of the accelerated settlement programme, which officials say reflects a deliberate strategy to unlock liquidity across the economy.
The ministry added that the initiative will enable contractors to return to project sites, settle obligations, pay workers and support supply chains.
It also reaffirmed its commitment to fiscal discipline while clearing legitimate debts, noting that the exercise is aimed at strengthening confidence in public financial management and improving efficiency in government spending.
