The Federal Government has approved the payment of outstanding fees owed to more than 1,240 contractors for projects executed under various Ministries, Departments and Agencies (MDAs).
In a statement issued on Monday by the Federal Ministry of Finance, the government said the approval followed a comprehensive verification and reconciliation process to confirm valid outstanding obligations.
The statement, signed by the Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, Mary-Ann Duke, noted that contractors with verified claims below ₦100 million were given priority in the current payment cycle.
According to the ministry, the initiative is part of efforts to clear legacy debts, ease liquidity pressures on businesses, and improve transparency in federal payment processes.
It added that the latest disbursement is expected to provide immediate relief to local contractors and small and medium-sized enterprises (SMEs), enabling them to resume project work, pay staff, and settle outstanding obligations to suppliers.
The ministry disclosed that about ₦436.6 billion had been processed in payments in May alone, describing it as part of an accelerated push to unlock funds and stimulate economic activity.
It further explained that prioritising smaller contractors was aimed at ensuring wider distribution of funds across sectors and regions while supporting job retention and project completion.
The government said the payments would also strengthen confidence among contractors, suppliers, and service providers engaged in public projects.
The development follows months of protests by indigenous contractors under the All Indigenous Contractors Association of Nigeria (AICAN), who had alleged unpaid debts were causing severe financial hardship, including asset seizures by banks.
The association had claimed that total outstanding payments stood at about ₦4.7 trillion, urging the Federal Government to fully settle verified obligations.
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