The Federal Ministry of Finance has approved payments to more than 1,240 local contractors in a move aimed at boosting liquidity for businesses and reinforcing the Federal Government’s commitment to meeting its financial obligations.
According to a statement issued on Monday by the ministry, the approval was granted by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, following a comprehensive verification and reconciliation process to ensure that only duly validated claims qualified for payment.
The ministry said the payments cover contractors engaged by various Ministries, Departments and Agencies (MDAs) and form part of efforts to address long-standing obligations owed by the government, particularly to indigenous businesses and small and medium-sized enterprises (SMEs).
It explained that contractors prioritised in the latest batch are those with verified claims of ₦100 million or less. The disbursement 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 stimulate economic activity across the country.
The ministry described the development as a reflection of its commitment to translating policy objectives into tangible outcomes through the transparent and fiscally responsible resolution of inherited liabilities.
It disclosed that the Federal Government has, over the past few months, processed payments exceeding ₦700 billion across different categories of verified obligations owed to local contractors.
The statement further revealed that approximately ₦436.6 billion in transactions were processed in May alone, highlighting a significant acceleration in payment activities designed to unlock liquidity and support economic growth.
According to the ministry, the decision to prioritise a large number of smaller contractors rather than concentrating payments among a few major beneficiaries is intended to broaden the economic impact of the disbursements and support businesses across different sectors and regions.
It added that the latest payments would strengthen confidence among contractors, suppliers and service providers working with government by demonstrating its commitment to honouring verified obligations.
“For many beneficiaries, the release of funds represents more than a financial transaction. It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects and contribute to economic recovery and growth,” the statement said.
The ministry reaffirmed its commitment to maintaining fiscal discipline while ensuring that legitimate obligations are settled promptly, with the goal of reducing outstanding liabilities, strengthening confidence in public financial management and supporting the effective delivery of public services and infrastructure.
The statement was signed by Efe Ovuakporie on behalf of the ministry and dated June 8, 2026.