FG Approves Payments for Over 1,240 Contractors

The Federal Government has cleared outstanding payments for more than 1,240 contractors in a move aimed at supporting businesses and projects.

The Federal Government has approved the payment of outstanding fees owed to more than 1,240 contractors who executed projects for various Ministries, Departments and Agencies (MDAs) across the country. The decision forms part of ongoing efforts to settle legacy obligations and improve liquidity within the business community.

According to a statement issued by the Federal Ministry of Finance, contractors with verified claims of ₦100 million or less received priority consideration in the latest round of approvals. The ministry explained that the payments followed an extensive verification and reconciliation process designed to confirm legitimate outstanding obligations.

The statement, signed by Mary-Ann Duke, Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, said the initiative demonstrates the government’s commitment to meeting its financial responsibilities while supporting economic activity.

The contractor payments are expected to provide immediate financial relief for businesses, particularly indigenous firms and small and medium-sized enterprises (SMEs). Officials said the funds would enable affected companies to return to project sites, pay workers, settle suppliers and continue operations without further disruption.

The ministry also revealed that approximately ₦436.6 billion in transactions were processed in May alone, reflecting a significant increase in payment activities aimed at boosting economic growth and unlocking liquidity across multiple sectors.

According to the government, prioritising smaller contractors will help spread the benefits of the disbursement more widely, allowing businesses in different regions and industries to sustain operations, preserve jobs and complete ongoing projects.

The latest Federal Government contractor payments are also expected to strengthen confidence among contractors, suppliers and service providers working with public institutions.

The development comes months after members of the All Indigenous Contractors Association of Nigeria (AICAN) staged protests over unpaid contracts. The group claimed that some contractors had lost properties to creditor banks due to delayed government payments and estimated outstanding obligations at ₦4.7 trillion.

Officials believe the latest disbursement marks another step towards addressing those concerns and improving trust between the government and the private sector.

Do you think timely payment of contractors can significantly boost business growth and project delivery in Nigeria?