FG clears over ₦700bn contractors’ debt

Nigeria's Federal Government has significantly accelerated its efforts to clear outstanding debts, processing payments exceeding 700 billion naira to local contractors in recent months. The Ministry of Finance announced that in May alone, approximately 436.6 billion naira was disbursed, marking a substantial step in addressing long-standing payment obligations.

These payments are part of a broader strategy to boost economic activity by providing much-needed liquidity to businesses. The Ministry of Finance disclosed that approvals have been granted for over 1,240 contractors across various government Ministries, Departments, and Agencies. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, reportedly approved these payments following a thorough verification and reconciliation process to ensure the legitimacy of all claims.

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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.

The government has prioritized contractors with verified claims of 100 million naira or less in the latest disbursement batch. This initiative is expected to offer immediate relief to hundreds of businesses, enabling them to resume projects, pay employees, settle with suppliers, and meet other financial commitments. The release of funds is seen as crucial for supporting economic activity nationwide.

This development is framed as a demonstration of the government's commitment to resolving inherited liabilities in a transparent and fiscally responsible manner. By translating policy objectives into tangible outcomes, the administration aims to reinforce its pledge to meet financial obligations and foster a more stable business environment. The increased pace of payment activities signifies a proactive approach to managing national finances and supporting the local economy.

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Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100m 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.