According to a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, the approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, after an extensive verification and reconciliation exercise carried out by the ministry.
The ministry explained that the review process was designed to ensure that only legitimate and validated claims qualified for payment.
The contractors benefiting from the latest disbursement are spread across various Ministries, Departments and Agencies (MDAs), with the exercise forming part of efforts to clear outstanding obligations owed by the government, particularly those affecting indigenous companies and small and medium-sized enterprises (SMEs).
Priority in the current round of payments was given to contractors with confirmed claims of ₦100 million and below.
The release of the funds is expected to provide a lifeline for many businesses, allowing them to resume work on project sites, pay employees, settle debts to suppliers, meet other financial obligations and stimulate economic activities across different sectors.
The statement disclosed that the Federal Government has, in recent months, paid out more than ₦700 billion in verified obligations owed to local contractors. It added that about ₦436.6 billion worth of transactions were processed in May alone, reflecting a significant increase in efforts to clear outstanding payments and improve liquidity within the economy.
The ministry noted that by focusing on a large number of smaller contractors rather than directing funds to only a handful of major beneficiaries, the government is ensuring that the economic benefits of the payments are felt more broadly across the country.
The latest disbursements are also expected to strengthen the confidence of contractors, suppliers and service providers engaged in government projects by demonstrating a commitment to meeting verified financial 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 noted.
The ministry reaffirmed its commitment to prudent fiscal management while ensuring that genuine obligations are settled without unnecessary delays. It added that efforts would continue to reduce outstanding liabilities, enhance confidence in public financial management and support the delivery of critical infrastructure and public services.