The Federal Government has approved the payment of verified outstanding contract obligations owed to more than 1,240 contractors across Ministries, Departments and Agencies (MDAs).
The approval aimed to boost the real economy will prioritize contract sums of N100m and below.
According to a statement issued by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, the exercise forms part of the government’s broader commitment to strengthening fiscal discipline while addressing long-standing payment obligations owed to service providers and contractors.
The ministry said the move is expected to provide immediate relief to small and medium-scale businesses that depend heavily on government contracts for their operations.
The government maintained that the verification process was designed to promote transparency, accountability, and value for public expenditure, while ensuring that genuine creditors receive their payments without undue delay.
The latest approval is also expected to strengthen confidence among contractors and other stakeholders doing business with government institutions, particularly as efforts continue to improve public financial management and restore trust in government procurement processes.
Officials say the settlement of verified claims aligns with ongoing reforms aimed at enhancing budget implementation, reducing the backlog of outstanding liabilities, and supporting economic stability across key sectors of the economy.
Recall that the association of indigenous contractors had in a protest in Abuja accused the federal government of not honouring contract obligations.
