The Federal Government has approved payments to more than 1,240 contractors across Ministries, Departments and Agencies (MDAs) in a move aimed at stimulating economic activity, supporting businesses, and accelerating project execution nationwide.
The Federal Ministry of Finance said the disbursement followed a comprehensive verification and reconciliation exercise to authenticate outstanding obligations.
Priority was given to contractors with verified claims of ₦100 million and below, a step designed to support indigenous businesses and small and medium-sized enterprises (SMEs).
According to the ministry, over ₦700 billion in verified liabilities has been processed in recent months.
Of this amount, approximately ₦436.6 billion was cleared in May alone, reflecting the government’s intensified effort to settle debts owed to contractors.
Officials noted that the payments are expected to enable contractors to return to project sites, pay workers, settle suppliers, and sustain jobs, while also ensuring the continued delivery of critical infrastructure and development projects across the country.
The initiative forms part of broader efforts by the Federal Government to inject liquidity into the economy, restore confidence in public sector contracting, and drive growth through sustained investment in key sectors.
