The Federal Government has processed payments of verified obligations owed to local contractors to the tune of over ₦700 billion as part of efforts to clear long-standing debts and inject liquidity into the economy.
This was disclosed by the Federal Ministry of Finance in a statement by its Director, Information and Public Relations, Efe Ovuakporie, on Monday, June 8, 2026, a report said.
The ministry said a total of about ₦436.6 billion was processed in the month of May alone while payments had also been approved for more than 1,240 contractors from the various Ministries, Departments and Agencies.
The ministry said the payments followed a verification and reconciliation exercise to ensure that only duly validated claims were paid and were approved by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
The most recent disbursements were part of the government’s efforts to address inherited payment obligations, particularly debts affecting indigenous contractors, small businesses and medium-sized enterprises, it said.
1,240 Contractors Benefited
The ministry said the payment approvals would provide immediate relief to businesses throughout the country and boost confidence in the government’s determination to honour its obligations.
“The Federal Ministry of Finance has approved payments to over 1,240 contractors, providing immediate liquidity support to businesses across the country, and reaffirming the Federal Government’s commitment to meeting its financial obligations,’’ the statement read.
It said that in the latest batch of payments, priority was given to contractors with verified claims of ₦100m and below.
The ministry said the decision was made to provide relief to smaller contractors, many of whom have been hampered by delayed payments and could use the relief to start operations and meet pressing financial obligations.
“Contractors with verified claims of about ₦100m and below have been given priority for payment in the latest batch. “The release of funds is expected to provide immediate relief to hundreds of businesses to return to project sites, pay workers, settle suppliers and meet financial obligations to support economic activity across the country,” said the ministry.
The ministry also said payment activities had grown significantly in recent months with ₦436.6bn processed in May alone.
The development, it said, was a renewed effort by the government to clear verified debts and support economic growth through improved cash flow to contractors and service providers.
“The Federal Government has made payments of over ₦700bn under different categories of verified obligations to local contractors in the past few months. “In May alone, transactions valued at about ₦436.6bn were processed, representing a sharp acceleration in payment activity to unlock liquidity and drive economic growth,” the statement said.
The ministry said the payments will enable beneficiaries to resume work at abandoned or delayed project sites, pay workers, settle suppliers and complete ongoing projects.
The approach would also help preserve jobs and support economic activities across sectors and regions, it added.
The ministry said the government deliberately distributed the money among a large number of smaller contractors rather than concentrating the payments among a few major beneficiaries.
This would help to widen the economic impact of the disbursements and ensure that more businesses across the country benefit from the payment exercise, it said.
The latest payments are expected to build confidence among contractors, suppliers and service providers doing business with the government, the statement said.
The disbursements were also in line with the administration’s commitment to address inherited liabilities in a transparent and fiscally responsible manner, the ministry said.
The Federal Ministry of Finance said it was committed to meeting its legitimate obligations at the appropriate time, adding that the government would continue to apply verification and reconciliation processes before payments were made.
It said the approach would help to reduce outstanding liabilities, improve public financial management and support the delivery of public services and infrastructure.
This is coming on the back of reports that the Federal Government has allocated ₦1.7 trillion in the 2026 Appropriation Bill to clear outstanding debts owed to contractors for capital projects executed in 2024.
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