The Federal Ministry of Finance has approved payment to more than 1,240 contractors, providing immediate liquidity support to businesses across the country.
The Federal Government also noted commitment to meeting its financial obligations.
This is s contained in a statement issued by the Head of Information in the Ministry, Efe Ovuakporie in Abuja on Monday.
Ovuakporie said that the approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele.
She said that it followeda diligent verification and reconciliation undertaken by the ministry to ensure that only duly validated obligations qualify for payment.
Ovuakporie said that the payments covered contractors across various Ministries, Departments and Agencies (MDAs) and represent a significant step in addressing long-standing payment obligations.
This according to her is particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).
She said that contractors prioritised for payment in the most recent batch were those with verified claims in the region of N100 million or less.
According to Ovuakporie, the release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments, and support economic activity across the country.
Ovuakporie said that this development reflects the ministry’s commitment to translating policy objectives into tangible outcomes by resolving inherited obligations in a transparent and fiscally responsible manner.
She said that over the past few months, the Federal Government had processed payments exceeding N700 billion across various categories of verified obligations owed to local contractors.
Ovuakporie said that within the month of May alone, approximately N436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.
She said that by prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the government was broadening the economic impact of these disbursements.
She noted that it was also supporting businesses across different sectors and regions of the country.
Ovuakporie said that the latest payments are expected to strengthen confidence among contractors, suppliers, and service providers doing business with government.
This she said demonstrated the government’s commitment to honouring duly verified obligations.
She said that for many beneficiaries, the release of funds represents more than a financial transaction.
Ovuakporie said that it provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth.
She said that the ministry remains committed to maintaining fiscal discipline while ensuring that legitimate obligations were settled in a timely manner going forward to substantially reduce outstanding liabilities over time. (NAN)
