FG Approves Payments for 1,240 Contractors

By Babatunji Wusu| The Federal Government has approved the payment of outstanding fees owed to more than 1,240 contractors for projects executed across various Ministries, Departments and Agencies (MDAs), in a move aimed at easing financial pressure on businesses and boosting economic activity.

According to a statement issued on Monday by the Federal Ministry of Finance, the approval followed a comprehensive verification and reconciliation exercise to confirm legitimate claims and outstanding obligations.

The statement, signed by Mary-Ann Duke, Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, revealed that contractors with verified claims of ₦100 million or less were given priority in the latest phase of payments.

“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.

“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less,” the statement said.

The ministry explained that the contractor payments would provide much-needed relief to indigenous firms and small and medium-sized enterprises (SMEs), enabling them to return to project sites, settle suppliers, pay workers and complete ongoing contracts.

It also disclosed that approximately ₦436.6 billion in transactions were processed in May alone, reflecting a significant increase in government payment activities designed to unlock liquidity and stimulate economic growth.

According to the ministry, prioritising smaller contractors will help spread the benefits of the disbursements across different sectors and regions while supporting business continuity and job preservation.

The latest development comes months after members of the All Indigenous Contractors Association of Nigeria (AICAN) staged protests over unpaid contracts. The group claimed that prolonged delays in payments had forced some contractors into financial distress, with several reportedly losing properties to creditor banks.

AICAN has consistently maintained that the Federal Government owes contractors about ₦4.7 trillion in outstanding obligations.