The Federal Ministry of Finance has approved payments to more than 1,240 local contractors, the ministry announced Monday, in a move officials say will ease liquidity pressure on small businesses and accelerate economic activity nationwide.
Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele approved the latest batch following a verification and reconciliation exercise designed to ensure only validated claims qualify for payment.
Contractors across multiple ministries, departments and agencies are covered.
The ministry said it prioritised businesses with verified claims of ₦100 million or less — a deliberate strategy to spread economic impact broadly rather than concentrate disbursements among a handful of large firms.
"For many beneficiaries, the release of funds represents more than a financial transaction," the ministry said in a statement. "It provides the certainty needed to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth."
The payments form part of a broader push to clear inherited contractor obligations.
The federal government has processed more than ₦700 billion in verified contractor payments in recent months.
In May alone, the ministry processed approximately ₦436.6 billion — a sharp acceleration officials say reflects a deliberate effort to unlock liquidity across the economy.
Officials said the funds will allow contractors to return to project sites, pay workers, settle suppliers and meet outstanding financial commitments.
The ministry said it remains committed to fiscal discipline while clearing legitimate obligations, adding that the effort is aimed at strengthening confidence in public financial management over the long term.
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