The Federal Ministry of Finance has approved payments to more than 1,240 local contractors in a move aimed at easing liquidity pressures on businesses and accelerating economic activity across Nigeria.
The approval, granted by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, follows what the ministry described as a rigorous verification and reconciliation process to ensure that only validated financial obligations were cleared for payment.
According to the ministry, the disbursement covers contractors engaged by various Ministries, Departments and Agencies (MDAs) and is expected to address longstanding payment backlogs, particularly those affecting indigenous businesses and small and medium-sized enterprises (SMEs).
Contractors with verified claims of ₦100 million or less were prioritised in the latest payment batch. The ministry said the release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to resume work on project sites, pay employees, settle suppliers, meet financial obligations and contribute to broader economic growth.
The latest approval forms part of the Federal Government’s broader efforts to resolve inherited liabilities while maintaining transparency and fiscal responsibility in public finance management.
Recent figures released by the ministry show that the Federal Government has processed payments exceeding ₦700 billion in verified obligations to local contractors over the past few months. In May 2026 alone, approximately ₦436.6 billion in transactions were processed, reflecting a significant increase in payment activity aimed at unlocking liquidity within the economy.
Officials said the government deliberately prioritised a larger number of smaller contractors rather than concentrating payments among a handful of major beneficiaries. The approach is expected to widen the economic impact of the disbursements by supporting businesses across multiple sectors and regions of the country.
The ministry noted that the payments are also intended to strengthen confidence among contractors, suppliers and service providers working with government by demonstrating a commitment to honouring verified obligations in a timely manner.
For many beneficiaries, the release of funds is expected to go beyond immediate financial relief, helping businesses preserve jobs, complete ongoing projects and sustain operations amid prevailing economic challenges.
The ministry further reiterated its commitment to fiscal discipline, stressing that efforts would continue to ensure legitimate obligations are settled promptly while reducing outstanding liabilities over time. It added that the strategy is designed to strengthen confidence in public financial management and support the effective delivery of public services and infrastructure nationwide.
