The Federal Ministry of Finance says it has approved payments to more than 1,240 contractors across federal ministries, departments and agencies (MDAs) following a verification and reconciliation exercise to confirm outstanding obligations.

In a statement issued on Monday by Mary-Ann Duke, senior special assistant on communication and press secretary to the minister of finance, the ministry said contractors with verified claims of N100 million or less were prioritised in the latest disbursement.

Duke said the initiative is aimed at providing liquidity support to businesses and reaffirming the government’s commitment to settling verified debts.

“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.

The ministry noted that the payments are expected to offer relief to indigenous firms and small and medium-sized enterprises (SMEs), enabling them to resume work at project sites, meet payroll obligations and settle suppliers.

“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less,” Duke added.

According to the ministry, the federal government has processed more than N700 billion in verified obligations owed to local contractors in recent months.

It said that in May alone, approximately N436.6 billion in payments were processed, describing the development as part of efforts to accelerate settlement of outstanding debts and stimulate economic activity.

The ministry further explained that prioritising smaller contractors is intended to ensure wider distribution of payments across sectors and regions, while supporting business continuity, job retention and project completion.

It added that the latest disbursements are also expected to improve confidence among contractors, suppliers and service providers engaged in federal projects.

In January, local contractors blocked access to the Federal Ministry of Finance in protest over unpaid debts, including claims linked to former Minister of State for Finance, Doris Uzoka-Anite.

Six months later, the Senate constituted a committee to engage the ministry over outstanding liabilities owed to contractors.