- Clears verified claims, prioritizes smaller businesses
BY COBHAM NSA – In a sweeping move to clear legacy debts and restore faith in public procurement, the Federal Ministry of Finance has approved payments to more than 1,240 local contractors and businesses across the country
Considered an economic catalyst and expression of the Federal Government’s resolve to meet its financial obligations, this strategic disbursement will funnel vital liquidity directly to the Small and Medium-Sized Enterprises (SMEs) that drive the nation’s infrastructure and development.
Reports said the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, granted the approval following a diligent verification and reconciliation undertaken by the Ministry to ensure that only duly validated obligations qualify for payment.
According to a statement by the Ministry, the payments cover contractors across various Ministries, Departments and Agencies (MDAs) and represent a significant step in addressing long-standing payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).
The statement signed by the Ministry’s Head of Information and Public Relations, Efe Ovuakporie, confirmed that contractors prioritised for payment in the most recent batch are those with verified claims in the region of ₦100 million or less, adding that the release of these funds provides immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, and support economic activity nationwide.
Also explaining that this latest development reflects the Ministry’s commitment to transparently and responsibly resolving inherited obligations, the statement said over the past few months, the Federal Government has processed more than ₦700 billion in verified payments for local contractors.
It further disclosed that In May 2026 alone, transactions worth approximately ₦436.6 billion were processed, significantly accelerating payment activity to unlock liquidity and drive economic growth, adding that by prioritizing a large number of smaller contractors rather than focusing on a few large beneficiaries, the government is broadening the economic impact across various sectors and geo-political zones of the country.
The statement said settling these verified obligations proves the government honours its commitments to contractors, suppliers, and service providers, even as the crucial funding is expected to give businesses the stability they need to protect jobs, finish ongoing projects, and drive economic recovery.
Meanwhile, the Finance Ministry has reaffirmed its commitment to strict fiscal discipline and timely debt settlement, stressing that by systematically clearing liabilities, the government will restore trust in public finances and accelerate the delivery of essential services and infrastructure nationwide.
