JUST IN: FG okays payments to 1,240 contractors

The Federal Ministry of Finance has approved payments to more than 1,240 contractors across various ministries, departments and agencies (MDAs).

In a statement issued on Monday, Mary-Ann Duke, senior special assistant on communication and press secretary to the minister of finance, said the approval followed a comprehensive verification and reconciliation exercise to validate outstanding obligations.

Duke noted that contractors with verified claims of N100 million or less were given priority in the latest round of disbursements.

“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.

According to the ministry, the payments are expected to provide relief to indigenous businesses, particularly 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 further disclosed that over N700 billion in verified obligations owed to local contractors has been processed in recent months.

It added that in May alone, approximately N436.6 billion in transactions were handled, reflecting a significant acceleration in payment activity aimed at unlocking liquidity and stimulating economic growth.

The ministry explained that prioritising smaller contractors is designed to broaden the impact of the disbursements across sectors and regions, while helping businesses sustain operations, preserve jobs and complete ongoing projects.

It also noted that the latest payments are expected to boost confidence among contractors, suppliers and service providers working with the government.

The development comes months after tensions between contractors and the ministry. In January, local contractors blocked Doris Uzoka-Anite, the former minister of state for finance, from accessing the ministry over unpaid debts.

Six months later, the Senate constituted a panel to engage the finance ministry on outstanding obligations owed to contractors.