Agency News
Barbara Bako, Abuja.
The Federal Government has approved the settlement of verified claims owed to more than 1,240 local contractors, a move expected to inject fresh liquidity into businesses and stimulate economic activity across the country.
The approval, granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, follows a review and reconciliation process undertaken by the Federal Ministry of Finance to validate outstanding obligations.
According to the ministry, the latest payment exercise focuses largely on contractors with verified claims of N100 million and below, many of whom are small and medium-sized enterprises operating across various sectors of the economy.
Officials said the disbursements are expected to enable beneficiaries to resume stalled projects, settle outstanding obligations to suppliers, meet payroll commitments and strengthen business operations.
The ministry noted that the payments form part of broader efforts by the administration to address inherited liabilities while promoting transparency and accountability in the management of public finances.
Figures released by the ministry indicate that more than N700 billion has been paid to local contractors under various categories of verified obligations in recent months, with approximately N436.6 billion of that amount processed in May alone.
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The government said prioritising a large number of smaller contractors is intended to spread the benefits of the payments more widely across the economy, particularly among indigenous businesses that often face liquidity constraints.
Analysts have long argued that delays in settling government obligations can affect project delivery, job retention and business sustainability, especially for smaller firms that rely heavily on public-sector contracts.
The ministry expressed confidence that the latest round of payments would improve confidence among contractors and service providers doing business with government while supporting ongoing effortsto drive economic recovery and growth.
It also reaffirmed its commitment to reducing outstanding liabilities through timely settlement of verified claims, saying the approach would strengthen public financial management and support the delivery of critical infrastructure and public services.
