FG Gives Green Light For Payment Of 1,240 Contractors

The Federal Government has approved the payment of outstanding fees owed to more than 1,240 contractors handling various projects across Ministries, Departments and Agencies (MDAs).

According to a statement issued by the Federal Ministry of Finance on Monday, the approval follows a comprehensive verification and reconciliation exercise carried out to confirm all valid outstanding obligations to contractors. The statement, signed by the Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, Mary-Ann Duke, noted that priority was given to contractors with verified claims below ₦100 million.

The Ministry explained that the latest disbursement is part of ongoing efforts to clear legacy debts, ease liquidity pressures on businesses, and strengthen transparency in government financial commitments. It added that the payments are expected to provide relief to indigenous firms and small and medium-sized enterprises, enabling them to return to project sites, settle obligations to workers and suppliers, and sustain ongoing operations.

In May alone, the Ministry disclosed that approximately ₦436.6 billion in transactions were processed, describing it as a significant boost in payment activity aimed at stimulating economic growth and improving cash flow across sectors. It further stated that prioritising smaller contractors is intended to ensure wider distribution of the financial impact and support job retention and project completion nationwide.

The Ministry also expressed confidence that the development would strengthen trust between government and contractors, as well as improve confidence in public sector contracting. The move comes months after protests by indigenous contractors under the All Indigenous Contractors Association of Nigeria (AICAN), who alleged unpaid debts running into trillions of naira and warned of continued demonstrations over the matter.

The association had previously claimed that some members were facing severe financial distress, including asset seizures by creditor banks, due to delayed payments for completed projects, with outstanding liabilities estimated at ₦4.7 trillion.