FG approves payments for over 1,200 contractors in different sectors

The Federal Government has approved payments to more than 1,240 contractors from different ministries, departments, and agencies. This decision aims to settle verified outstanding debts.

The Ministry of Finance shared this update on Monday. They confirmed that after checking and reconciling, they validated the claims from contractors.

Mary-Ann Duke, the senior special assistant on communication and press secretary to the Minister of Finance, said that contractors with verified claims of N100 million or less got priority in this latest payment round.

This action follows months of concerns about unpaid contracts. In January, frustrated contractors protested at the ministry's headquarters in Abuja. They blocked access to the then Minister of State for Finance, Doris Uzoka-Anite, demanding quick payment of their debts. This protest also caught the attention of the legislature. Last July, the Senate set up a committee to discuss the unpaid debts with the finance ministry and other relevant agencies.

The payments announced on Monday might bring quick relief to businesses, especially local firms and small to medium-sized enterprises that have waited months for payments from the government.

This initiative aims to provide immediate financial support across the country. The statement highlighted the government’s commitment to meeting its financial obligations.

The ministry mentioned that these payments will help contractors return to their project sites, pay their workers, and settle accounts with suppliers. In recent months, the government has verified and processed over N700 billion owed to local contractors. About N436.6 billion was paid in May alone.

By prioritising smaller contractors, the government hopes to spread these benefits across different sectors and regions. This will help businesses continue operating and protect jobs.

The ministry is optimistic that these payments will restore trust among contractors, suppliers, and other service providers working with the government.