The Federal Government has approved the payment of verified claims to more than 1,240 contractors across various Ministries, Departments and Agencies (MDAs) in a move aimed at supporting businesses, improving liquidity and accelerating the execution of projects nationwide, SAVANNAH NEWSNOW REPORTS.
The development was disclosed by the Federal Ministry of Finance, which stated that the payments followed an extensive verification and reconciliation exercise designed to ensure transparency and accountability in the settlement of outstanding obligations.
According to the ministry, priority was given to contractors with verified claims of ₦100 million and below as part of efforts to strengthen indigenous businesses and support small and medium-sized enterprises (SMEs), which form a critical component of the nation’s economy.
The government explained that the initiative is expected to provide much-needed financial relief to contractors, enabling them to return to project sites, meet payroll obligations, settle outstanding debts to suppliers and sustain ongoing operations.
The Ministry of Finance further revealed that more than ₦700 billion in verified obligations has been processed in recent months. Of this amount, approximately ₦436.6 billion was disbursed in May alone, reflecting the administration’s commitment to clearing verified debts and stimulating economic activity.
Officials noted that the payments would help preserve jobs, improve cash flow within the private sector, and facilitate the timely completion of critical infrastructure and development projects across the country.
The government reaffirmed its commitment to maintaining fiscal discipline while ensuring that legitimate obligations are settled promptly to support economic growth and enhance service delivery nationwide.
