The Federal Government has approved the payment of outstanding debts of up to N100 million to more than 1,200 contractors across the country.
The disbursement comes months after contractors intensified calls for the settlement of outstanding debts, prompting increased engagement between government officials and stakeholders seeking resolution of the backlog.
The payments followed a comprehensive verification and reconciliation process aimed at confirming legitimate claims submitted by contractors engaged by ministries, departments and agencies (MDAs).
The approval was announced on Monday in a statement by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, following concerns raised by contractors over unpaid obligations.
According to the statement, the decision is expected to inject liquidity into affected businesses, particularly indigenous firms and small and medium-sized enterprises (SMEs) that have faced challenges due to delayed payments.
The Ministry of Finance said the intervention would enable many contractors to resume stalled projects, meet payroll obligations, and settle debts owed to suppliers and service providers.
“This payment reflects the government’s determination to honour verified commitments and support businesses that contribute to national development,” the ministry said.
The ministry also noted that prioritising contractors with verified claims of N100 million or less was designed to ensure that the benefits reach a wider segment of businesses across different sectors of the economy.
It further disclosed that more than N700 billion in verified obligations to local contractors has been processed in recent months as part of efforts to clear longstanding debts.
It added that payment activities have accelerated significantly, with about N436.6 billion in transactions processed in a single month, reflecting the government’s push to address outstanding liabilities.
“By focusing on smaller contractors, we are helping sustain operations, protect jobs, and support the completion of ongoing projects across the country,” the statement added.
The government expressed confidence that the payments would strengthen trust between public institutions and private sector partners while encouraging greater participation in future government projects.