Finance Ministry Clears Payments for Over 1,240 Contractors, Prioritises Claims Below ₦100m

The Federal Government has approved the settlement of outstanding payments to more than 1,240 contractors engaged by various Ministries, Departments and Agencies (MDAs), in a move aimed at easing financial pressures on businesses and improving confidence in public sector procurement.

The approval was granted by the Federal Ministry of Finance following a comprehensive verification and reconciliation exercise to validate outstanding obligations owed to contractors across government institutions.

In a statement issued on Monday, the Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, Mary-Ann Duke, said the payment process would prioritize verified claims valued below ₦100 million.

According to the ministry, the exercise is part of broader efforts to clear legacy debts accumulated over the years while ensuring that only properly verified claims are paid.

Duke explained that the initiative reflects the government’s commitment to transparency, accountability, and fiscal responsibility in the management of public finances.

She noted that settling the outstanding obligations would provide much-needed liquidity to affected businesses, many of which have faced operational challenges due to delayed payments.

“The approvals followed a rigorous verification and reconciliation process to ascertain the authenticity of outstanding claims and ensure value-for-money in public expenditure,” the statement said.

The ministry added that prioritising smaller claims would enable a larger number of contractors, particularly small and medium-sized enterprises, to receive payments promptly and resume normal business operations.

Stakeholders have long called for the clearance of government debts owed to contractors, arguing that delayed payments negatively affect project delivery, business sustainability, and job creation.

The latest approval is expected to inject fresh liquidity into the economy, support ongoing projects, and strengthen trust between government agencies and private sector contractors.

Officials said the payment process would continue in phases as the government works to address verified outstanding obligations across MDAs nationwide.