*The Federal Ministry of Finance, Abuja, describes the Minister’s approval for payments for 1,240 local contractors with verified claims in the region of ₦100 million or less as a key step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises in Nigeria
Isola Moses | ConsumerConnect
As part of measures to reinforce the Federal Government’s commitment to meeting financial obligations, the Federal Ministry of Finance, Abuja, FCT, has approved payments to over 1,240 contractors for immediate liquidity support to businesses across the country.
ConsumerConnect reports Mr. Taiwo Oyedele, Honourable Minister for Finance and Coordinating Minister for the Economy, granted the approval.
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The government disclosed the development followed a diligent verification and reconciliation earlier undertaken by the Ministry, to ensure that only duly validated obligations would qualify for payments.
Efe Ovuakporie of the Federal Ministry of Finance Monday, June 8, 2026, stated the approved payments covered contractors across various government Ministries, Departments and Agencies (MDAs).
The Ministry indicated that the recent approval for payments represented a significant step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs) in Nigeria.
The government said the contractors prioritised for payment in the most recent batch are those with verified claims in the region of ₦100 million or less.
The statement indicated 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 activities across the country.
The Federal Government noted: “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.”
It further said over the past few months, the Federal Government had processed payments exceeding ₦700 billion across various categories of verified obligations owed to local contractors.
According to the Ministry, in May alone, approximately ₦436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.
The government emphasised that by prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, it is broadening the economic impact of these disbursements, supporting businesses across different sectors and regions of the country.
Ovuakporie stated the latest payments are expected to strengthen confidence among contractors, suppliers, and service providers doing business with government by demonstrating its commitment to honouring duly verified 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 Ministry of Finance said.
The statement noted the Ministry remains committed to maintaining fiscal discipline while ensuring that legitimate obligations are settled in a timely manner going forward.
It added this is to substantially reduce outstanding liabilities over time, strengthen confidence in public financial management, and support the effective delivery of public services and infrastructure in Nigeria.