FG Approves Outstanding Payments to Over 1,240 Contractors

FG Approves Outstanding Payments to Over 1,240 Contractors
Contractors owed ₦100 million or less given priority
Ministry says move will boost businesses and economic activity

The Federal Government has approved the payment of outstanding contract fees owed to more than 1,240 contractors for projects executed across various Ministries, Departments and Agencies (MDAs).

The approval was disclosed in a statement issued on Monday by the Federal Ministry of Finance.

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EKO HOT BLOG reports that according to the statement, which was signed by the Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, Mary-Ann Duke, priority was given to contractors with verified outstanding claims of ₦100 million or less.

The Ministry explained that the approvals followed a comprehensive verification and reconciliation exercise aimed at confirming legitimate outstanding obligations owed to contractors.

The move forms part of the government’s efforts to clear legacy debts, improve cash flow for businesses and strengthen transparency in the settlement of public sector obligations.

“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.

“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of ₦100 million or less,” the statement read.

The Ministry noted that the payments would provide much-needed relief for indigenous businesses and small and medium-sized enterprises (SMEs), enabling them to resume work on project sites, settle suppliers and meet payroll obligations.

It further disclosed that approximately ₦436.6 billion in transactions were processed in May alone, reflecting a significant increase in payment activities designed to unlock liquidity within the economy and support business operations.

According to the Ministry, prioritising smaller contractors will ensure that the impact of the disbursements is felt across different sectors and regions of the country. It added that the strategy is expected to help businesses remain operational, preserve jobs and facilitate the completion of ongoing projects.

The Ministry also expressed confidence that the latest round of payments would strengthen trust among contractors, suppliers and service providers engaged in government projects.

The development comes months after indigenous contractors under the umbrella of the All Indigenous Contractors Association of Nigeria (AICAN) staged protests over unpaid contract fees.

FG Approves Outstanding Payments to Over 1,240 Contractors

The contractors had alleged that prolonged delays in payment forced some members to lose houses and other assets to creditor banks. The group vowed to continue its protests until all outstanding debts are settled.

AICAN had estimated the total amount owed to its members and other contractors at approximately ₦4.7 trillion.