RismadarVoice Reporters, June 8, 2026
The Federal Government of Nigeria says it has processed payments exceeding ₦700 billion in verified obligations owed to local contractors in recent months, as part of efforts to clear outstanding debts and stimulate economic activity across the country.
The disclosure was made by the Federal Ministry of Finance in a statement issued by its Director of Information and Public Relations, Efe Ovuakporie.
According to the ministry, more than 1,240 contractors across various Ministries, Departments and Agencies (MDAs) have received approval for payment following a comprehensive verification and reconciliation exercise.
The approvals were granted by Taiwo Oyedele, with the government emphasising that only duly validated claims qualified for settlement.
The ministry revealed that approximately ₦436.6 billion was disbursed in May alone, representing a significant increase in payment activity aimed at unlocking liquidity and supporting business operations nationwide.
Officials said contractors with verified claims of ₦100 million or less were prioritised in the latest payment cycle, a move intended to provide immediate relief to small and medium-sized businesses affected by delayed government obligations.
According to the ministry, the funds will enable beneficiaries to return to project sites, pay workers, settle suppliers, meet financial commitments and sustain ongoing operations.
The government described the exercise as a major step toward resolving inherited liabilities in a transparent and fiscally responsible manner while ensuring that economic policies translate into tangible benefits for businesses and citizens.
The ministry further noted that distributing payments across a large number of smaller contractors, rather than concentrating them among a few major firms, would broaden the economic impact across sectors and regions of the country.
Officials expressed confidence that the disbursements would strengthen trust between the government and contractors, support job preservation, facilitate project completion and improve confidence in public financial management.
The Federal Government reaffirmed its commitment to fiscal discipline and the timely settlement of legitimate obligations, stating that the approach would help reduce outstanding liabilities, improve service delivery and accelerate infrastructure development nationwide.
