Abuja, June 9, 2026 – The Federal Ministry of Finance has approved the payment of more than 1,240 contractors across the country as part of efforts to ease liquidity pressures and strengthen business operations.
The approval was confirmed in a statement issued by the Ministry’s Head of Information, Efe Ovuakporie, in Abuja on Monday.
According to the statement, the disbursement was authorised by the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, following a thorough verification and reconciliation exercise to ensure that only legitimate and validated claims were processed.
The payments cover contractors engaged under various Ministries, Departments and Agencies (MDAs), and are aimed at addressing outstanding obligations, particularly those owed to indigenous companies as well as small and medium-sized enterprises (SMEs).
Ovuakporie explained that priority was given to contractors with verified claims of N100 million and below in the latest payment cycle.
She added that the release of funds is expected to provide immediate relief to affected businesses, enabling them to return to project sites, settle workers’ wages, pay suppliers, and sustain ongoing operations.
The ministry said the initiative reflects its commitment to converting policy intentions into tangible outcomes by resolving inherited liabilities in a transparent and fiscally responsible manner.
Over the past months, the Federal Government has reportedly processed more than N700 billion in payments across various verified obligations owed to local contractors.
In May alone, about N436.6 billion was disbursed, indicating a faster pace of payment aimed at improving liquidity and supporting economic recovery.
The statement noted that prioritising smaller contractors ensures wider distribution of economic benefits rather than concentrating payments among a few large beneficiaries.
It added that this approach helps stimulate activity across different sectors and regions of the country.
The ministry further stated that the latest round of payments is expected to boost confidence among contractors, suppliers, and service providers working with government.
It also reaffirmed the administration’s commitment to honouring verified obligations while maintaining fiscal discipline.
For many beneficiaries, the payments are expected to provide operational stability, safeguard jobs, support project completion, and contribute to broader economic growth.
The Ministry of Finance reiterated its resolve to continue settling legitimate liabilities in a timely manner, with the goal of gradually reducing outstanding debts while sustaining economic momentum.