This indeed good news for over 1,240 contractors across various Ministries, Departments and Agencies, as the Federal Government, through the ministry of Finance on Monday, 8 June, 2026, disclosed that it has cleared over ₦700 billion debt it owed them, reports thegazellenews.com.
The Director of Information and Public Relations in the Ministry of Finance, Efe Ovuakporie, who made this disclosure in a press statement issued on Monday, 8 June, 2026 said the approvals were granted by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, following a verification and reconciliation exercise to ensure that only duly validated claims qualified for payment.
According to Ovakporie, the latest disbursements represented a major step towards addressing inherited payment obligations, particularly those affecting indigenous businesses and small and medium-sized enterprises.
“The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations, ” the statement said, just as it also added that contractors with verified claims of N100 million or less were prioritised in the latest batch of payments.
The statement said the release of funds is expected to provide immediate relief to hundreds of businesses by enabling them to return to project sites, pay workers, settle suppliers and meet other financial obligations.
“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less. The release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments, and support economic activity across the country,” the statement added.
The ministry described the development as part of the government’s commitment to resolving inherited liabilities in a transparent and fiscally responsible manner while translating policy objectives into tangible outcomes.
It further disclosed that payment activities had accelerated significantly in recent months, with approximately N436.6 billion in transactions processed in May.
“Over the past few months, the Federal Government has processed payments exceeding N700 billion across various categories of verified obligations owed to local contractors. Within the month of May alone, approximately N436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth,” the ministry stated.
While stating that by prioritising a large number of smaller contractors rather than concentrating payments among a few major beneficiaries, the ministry said government was broadening the economic impact of the disbursements across sectors and regions.
The statement added that the latest payments would strengthen confidence among contractors, suppliers and service providers doing business with the government, while helping beneficiaries sustain operations, preserve jobs and complete ongoing projects.
The statement reaffirmed FG’s commitment to fiscal discipline and the timely settlement of legitimate obligations, saying the approach would help reduce outstanding liabilities, strengthen confidence in public financial management and support the delivery of public services and infrastructure.
