FG clears N700bn contractor debts

The Nigerian federal government has successfully settled more than N700 billion in verified outstanding payments owed to local contractors. This initiative included a significant disbursement of N436.6 billion processed during the month of May alone. By fulfilling these long-standing financial obligations, the administration aims to inject much-needed liquidity into the domestic market. Officials expect this move to stimulate economic activity and provide relief to businesses that have been impacted by the delayed payments. The settlement represents a strategic effort to stabilize the local supply chain and restore confidence among government vendors.

The clearance of these substantial debts is expected to improve cash flow for local businesses, thereby fostering economic growth and strengthening the government's fiscal credibility.