BREAKING: Federal Gov’t Settles Debts Owed 1,240 Local Contractors

The Federal Government has approved payments to 1,240 contractors across ministries, departments, and agencies (MDAs), with priority given to verified claims of debts of N100 million or below.

In a statement on Monday, Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, Taiwo Oyedele, said the approval followed a verification and reconciliation exercise to validate outstanding obligations.

Duke said the move provides immediate liquidity support to businesses nationwide and reinforces the government’s commitment to meeting its financial obligations.

The ministry said the payments will offer relief to indigenous businesses and small and medium-sized enterprises, helping contractors return to project sites, pay workers, and settle suppliers.

According to the ministry, more than N700 billion in verified obligations to local contractors has been processed in recent months. In May alone, about N436.6 billion in transactions were processed, marking a significant acceleration in payment activity.

The ministry added that prioritising smaller contractors is intended to spread the impact across sectors and regions, sustain operations, preserve jobs, and complete ongoing projects.

The payments are also expected to boost confidence among contractors, suppliers, and service providers working with the government.

In January, local contractors blocked the Minister of State for Finance, Doris Uzoka-Anite, from accessing the ministry. Six months later, the Senate set up a panel to engage the finance ministry on debts owed to contractors.