FG clears payments for 1,240 contractors

The Federal Government has approved payments to more than 1,240 contractors owed by various Ministries, Departments and Agencies (MDAs), as part of efforts to clear verified outstanding obligations.

The approval followed a comprehensive verification and reconciliation exercise conducted to validate contractors’ claims across government institutions.

This 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, the exercise was aimed at ensuring that only legitimate and properly documented claims were approved for payment, in line with the government’s commitment to transparency and fiscal responsibility.

The statement noted that priority is being given to contractors with claims below ₦100 million, a move expected to provide relief to small and medium-sized firms affected by delayed payments.

The Ministry of Finance said the settlement process forms part of broader efforts by the Federal Government to address outstanding liabilities, improve cash flow within the economy and support businesses executing public sector contracts.

It added that the verification exercise involved a thorough review of claims submitted by contractors to eliminate discrepancies and confirm the authenticity of obligations owed by MDAs.

The government expressed optimism that the payments would boost confidence among contractors, enhance project execution and strengthen the relationship between public institutions and service providers.

The ministry reaffirmed its commitment to prudent financial management and the timely settlement of verified obligations, while assuring contractors that efforts are ongoing to address outstanding claims in a transparent and orderly manner.