By Seun Ibiyemi
The Federal Government has approved the payment of outstanding obligations owed to more than 1,240 contractors engaged by various Ministries, Departments and Agencies (MDAs), in a move aimed at clearing long-standing debts and boosting economic activities across the country.
The approval, granted by the Federal Ministry of Finance, follows an extensive verification and reconciliation exercise undertaken to authenticate outstanding claims and ensure that only legitimate obligations are settled.
The development was disclosed in a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance.
According to the ministry, priority is being given to verified claims valued below N100 million as part of efforts to accelerate the settlement process and provide immediate relief to affected businesses.
The ministry said the initiative forms part of the Federal Government’s broader strategy to address legacy debts, improve contractors’ liquidity and reinforce confidence in public financial management.
It noted that many contractors have faced significant financial challenges due to delayed payments, with the outstanding obligations affecting business operations, project execution and workforce sustainability.
“The payment of these verified claims underscores the government’s commitment to transparency, accountability and efficiency in the management of public finances,” the statement said.
The ministry added that the exercise would inject much-needed funds into the economy, enabling businesses to meet operational commitments, retain jobs and expand productive activities.
Officials expressed optimism that the payments would have a multiplier effect on the economy by stimulating business growth, supporting small and medium-scale enterprises and enhancing the delivery of public sector projects.
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The move is also expected to strengthen trust between government institutions and private sector contractors, many of whom rely on timely payments to sustain operations and deliver critical infrastructure and services.
Analysts believe the settlement of verified debts could improve cash flow within key sectors of the economy while reinforcing the administration’s efforts to promote fiscal responsibility and economic recovery.
The Ministry of Finance reaffirmed its commitment to ensuring that public funds are managed prudently and that all verified obligations are settled in accordance with established financial regulations and due process.
