FG clears over ₦700bn contractors’ debt

File: Minister of State for Finance and Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele

The Federal Government has processed payments exceeding N700bn in verified obligations owed to local contractors over the past few months, including N436.6bn disbursed in May alone, as part of efforts to clear long-standing debts and boost economic activity. The Federal Ministry of Finance disclosed this in a statement issued on Monday by its Director of Information and Public Relations, Efe Ovuakporie, noting that payments had also been approved for more than 1,240 contractors across various Ministries, Departments and Agencies. According to the ministry, the approvals were granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following a verification and reconciliation exercise to ensure that only duly validated claims qualified for payment. The ministry said the latest disbursements represented a major step towards addressing inherited payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises. It stated, “The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations.” The statement explained that contractors with verified claims of N100m or less were prioritised in the latest batch of payments. According to the ministry, the release of funds is expected to provide immediate relief to hundreds of businesses by enabling them to return to project sites, pay workers, settle suppliers and meet other financial obligations. “Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100m or less. 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,” the statement added. Related News FG, development partners seek stronger reforms in water sector Policy implementation hindering Nigeria’s industrial growth – BATN FG clears five-month allowance arrears for lecturers The ministry described the development as part of the government’s commitment to resolving inherited liabilities in a transparent and fiscally responsible manner while translating policy objectives into tangible outcomes. It further disclosed that payment activities had accele