Federal Govt Lauded Over Release Of Funds To Contractors

The Civil Rights Group for Economic Reforms (CRGER) has commended the Federal Government and Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, over the approval and release of funds to more than 1,240 contractors across Ministries, Departments and Agencies (MDAs), describing the move as a major boost to the economy.

In a statement issued on Tuesday and signed by its Executive Coordinator, David Matthew, the group said the decision to prioritise verified contractual obligations, particularly claims below N100 million, demonstrates the government’s commitment to accountability, transparency and support for indigenous businesses.

CRGER noted that the payment of verified claims would help restore confidence in public financial management and reassure contractors that the government remains committed to meeting its obligations.

According to the group, the release of funds comes at a critical time when many local businesses are struggling with rising operating costs and limited access to affordable financing.

Matthew said the intervention would inject much-needed liquidity into the economy, enabling contractors to return to project sites, settle outstanding obligations, retain workers and contribute more effectively to economic growth.

The organisation described the processing of over N700 billion in verified obligations, including about N436.6 billion reportedly paid within May, as a significant step towards stimulating economic activities and supporting local enterprises.

“We commend the Federal Government for demonstrating commitment to responsible fiscal management and the settlement of verified contractual obligations owed to contractors across the country,” the statement said.

The group also praised the emphasis placed on due process and verification before the release of funds, noting that the exercise would help ensure that only legitimate claims receive government approval.

CRGER further stated that prompt payment of contractors would have positive ripple effects across various sectors of the economy by supporting jobs, boosting household incomes and accelerating the completion of critical infrastructure projects.

It urged the government to sustain the momentum by ensuring timely settlement of future obligations and deepening reforms aimed at improving the business environment for local enterprises.

The group expressed optimism that continued adherence to fiscal discipline and transparency would strengthen investor confidence and contribute to sustainable economic growth.

It reaffirmed its support for policies and reforms that promote accountability, economic stability and national development.