The Federal Government of Nigeria has approved payments to more than 1,240 local contractors as part of efforts to clear verified outstanding obligations and support business activities across the country.

The development was disclosed in a statement issued by the Federal Ministry of Finance and signed by the ministry’s Head of Information and Public Relations, Efe Ovuakporie.

According to the ministry, the payments followed a verification and reconciliation process designed to ensure that only validated claims qualified for settlement.

The statement noted that the disbursements cover contractors engaged by various Ministries, Departments and Agencies (MDAs), with the initiative expected to provide liquidity support to businesses, particularly indigenous firms and small and medium-sized enterprises (SMEs).

It added that contractors with verified claims of up to ₦100 million were prioritised in the latest round of payments.

“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 ministry stated.

The ministry further disclosed that the Federal Government has processed payments exceeding ₦700 billion in verified obligations owed to local contractors in recent months.

According to the statement, about ₦436.6 billion in transactions were processed in May alone, representing a sharp increase in payment activity.

The government explained that prioritising smaller contractors was aimed at spreading the economic impact of the disbursements across different sectors and regions of the country.

The ministry also expressed confidence that the payments would strengthen trust between the government and contractors, suppliers and service providers by demonstrating commitment to settling verified obligations promptly.

It reiterated that the Federal Government remains committed to maintaining fiscal discipline while reducing outstanding liabilities and supporting infrastructure delivery and public service projects nationwide.