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FG okays payments to 1,240 local contractors, clears over ₦700bn debt

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The Federal Ministry of Finance said it 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 approval, granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, follows a verification and reconciliation undertaken by the Ministry to ensure that only duly validated obligations qualify for payment, according to a statement on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance.

The payments covered contractors across various Ministries, Departments and Agencies (MDAs) and represent a significant step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).

According to the statement, contractors prioritised for payment in the most recent batch are those with verified claims in the region of ₦100 million or less.

The release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments, and support economic activity across the country.

According to the statement, over the past few months, the Federal Government has processed payments exceeding ₦700 billion across various categories of verified obligations owed to local contractors.

Within the month of May alone, approximately ₦436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.

By prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the government said it is broadening the economic impact of these disbursements, supporting businesses across different sectors and regions of the country.