The Federal Ministry of Finance has approved the settlement of outstanding payments to more than 1,240 contractors engaged by various Ministries, Departments, and Agencies (MDAs), in a move aimed at addressing longstanding financial obligations and supporting business operations across the country.
The approval follows a comprehensive verification and reconciliation exercise conducted by the ministry to validate pending claims and ensure the authenticity of outstanding debts owed to contractors.
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This was disclosed in a statement issued on Monday by the Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, Mary-Ann Duke.
According to the statement, the payment process will prioritize verified claims valued below ₦100 million, in line with the Federal Government’s commitment to clearing legacy debts and improving liquidity for businesses affected by delayed payments.
The ministry noted that the exercise forms part of broader efforts to strengthen fiscal discipline, enhance accountability, and improve transparency in the management of public finances.
Officials explained that the verification process was designed to eliminate discrepancies, prevent fraudulent claims, and ensure that only legitimate obligations are settled.
The settlement is expected to provide much-needed relief to contractors, particularly small and medium-sized enterprises (SMEs), many of which have faced cash flow challenges due to delayed government payments.
Industry stakeholders have consistently called for the prompt settlement of verified debts, arguing that timely payments are essential for sustaining business operations, preserving jobs, and stimulating economic growth.
The Ministry of Finance reaffirmed its commitment to maintaining transparent payment processes and ensuring that contractors receive funds owed to them in a timely and accountable manner.
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The latest approval is expected to boost confidence among government contractors and further support the Federal Government’s efforts to improve efficiency and credibility in public sector financial management.