Edino Chubiyo Cornelius 
ABUJA, Nigeria – The Federal Government has approved and processed more than N700 billion in verified contractor payments as part of efforts to reduce outstanding liabilities and inject liquidity into businesses across Nigeria.
The Ministry of Finance on Monday disclosed that over N436 billion of the payments were processed in May alone, benefiting more than 1,240 contractors engaged by various Ministries, Departments and Agencies (MDAs).
The development marks one of the largest recent disbursement exercises aimed at clearing verified government obligations and supporting economic activities nationwide.
According to a statement issued by the ministry’s Director of Information and Public Relations, Efe Ovuakporie, the payments followed an extensive verification and reconciliation process designed to ensure that only legitimate claims qualified for settlement.
The ministry explained that contractors with verified claims of N100 million and below received priority consideration in the latest phase of disbursement.
Officials said the payments would provide immediate financial relief to businesses struggling with delayed government obligations, enabling them to return to project sites, pay workers, settle debts and sustain operations.
“The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations,” the statement said.
The ministry noted that the initiative forms part of broader efforts to address inherited liabilities in a transparent and fiscally responsible manner.
Government officials further revealed that payment activities accelerated significantly in recent months, with approximately N436.6 billion processed in May alone.
According to the ministry, distributing payments among a wider pool of smaller contractors rather than concentrating resources on a few large beneficiaries would broaden the economic impact across sectors and regions.
Economic analysts say the move could improve cash flow within the construction, engineering and service sectors while restoring confidence among businesses that depend on government contracts.
The Federal Government reiterated its commitment to settling verified obligations promptly, describing the exercise as a key component of efforts to strengthen public financial management and accelerate infrastructure delivery.
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Korede Abdullah 
Mirian Gom 
Oluwatobi Adu 