By By Elizabeth Ugbo
The Federal Ministry of Finance has approved the payment of verified outstanding obligations owed to more than 1,240 contractors engaged by Ministries, Departments, and Agencies (MDAs) across Nigeria. The approval was announced on Monday following a nationwide verification exercise. The ministry authorized the payments to clear long-standing debts, improve contractors’ cash flow, and stimulate economic activities. Priority will go to verified claims below N100 million.
Verification Exercise Confirms Legitimate Claims
The ministry conducted an extensive verification and reconciliation exercise before approving the payments. Officials reviewed outstanding claims to confirm their authenticity and ensure only legitimate obligations qualified for settlement.
As a result, the government identified and approved verified claims for payment under the initiative.
Priority for Claims Below N100 Million
In a statement, Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, said the ministry is prioritizing verified claims valued below N100 million.
According to her, the approach will enable the government to provide faster relief to a larger number of contractors and businesses.
Boost for Businesses and Economic Activities
The ministry stated that many contractors have faced financial difficulties due to delayed payments. Consequently, the approved settlements will improve liquidity and help affected businesses meet operational obligations.
The payments will also support workers, suppliers, and other stakeholders connected to the projects.
Government Strengthens Financial Transparency
The Federal Government described the initiative as part of its broader strategy to address legacy debts and strengthen public financial management.
Furthermore, officials said the exercise demonstrates the government’s commitment to transparency, accountability, and efficient spending.
Expected Economic Impact
Government officials expressed confidence that the payments will inject funds into productive sectors of the economy. They noted that the initiative will support business growth, increase economic activity, and reinforce confidence in government financial processes.
The ministry added that settling verified obligations remains a key step toward sustaining economic stability and supporting national development.
