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Nigerian government approves payments for 1,240 contractors
🇳🇬 Nigeria /Economy & Trade

Nigerian government approves payments for 1,240 contractors

From Premium Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • The Nigerian Federal Government has approved payments for over 1,240 contractors to settle outstanding debts.
  • Payments prioritize contractors with verified claims of N100 million or less, following a protest by frustrated contractors in January.
  • The initiative aims to provide liquidity, enable contractors to resume projects, and restore confidence in government financial commitments.

The Nigerian Federal Government has officially approved payments for more than 1,240 contractors, aiming to settle verified outstanding obligations across ministries and agencies. The Ministry of Finance confirmed on Monday that a thorough verification process validated the claims, with a focus on those N100 million or less in the latest disbursement round.

contractors with verified claims of N100 million or less were prioritised in the latest disbursement round.

— Mary-Ann DukeStatement from the senior special assistant on communication and press secretary to the minister of finance

This action follows months of mounting concern over unpaid government contracts. Frustrated contractors staged a protest at the finance ministry headquarters in January, demanding prompt settlement of their debts. The Senate had also formed a committee in July to address the backlog of debts owed to contractors.

This initiative promises to offer immediate liquidity support nationwide, reaffirming the Federal Government’s dedication to fulfilling its financial commitments.

— Ministry of Finance statementEmphasizing the goals of the payment initiative

The announced payments are expected to bring immediate relief to businesses, particularly indigenous firms and SMEs, which have faced significant delays. The Ministry of Finance stated that these disbursements will allow contractors to return to project sites, pay employees, and settle with suppliers. The government has reportedly verified and processed over N700 billion in owed obligations recently, with approximately N436.6 billion settled in May alone.

these disbursements will enable affected contractors to return to project sites, pay their workers, and settle with suppliers.

— Ministry of Finance statementHighlighting the expected impact on businesses

By prioritizing smaller contractors, the government intends to spread the benefits across various sectors and regions, helping businesses remain operational and safeguarding jobs. The ministry expressed optimism that these payments will rebuild confidence among contractors, suppliers, and service providers working with the government, reaffirming its commitment to fulfilling financial obligations.

these payments will restore confidence among contractors, suppliers, and other service providers working with the government.

— Ministry of Finance statementExpressing optimism about the initiative's outcome
DistantNews Editorial

Originally published by Premium Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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