The Federal Government has processed payments exceeding N700 billion to settle verified debts owed to local contractors across the country.
According to reports, more than N436.6 billion was disbursed in May alone, with over 1,240 contractors benefiting from the exercise.
The Ministry of Finance said priority was given to contractors owed N100 million or less as part of efforts to improve liquidity within the economy and support small and medium-scale businesses.
The payment initiative is expected to enable contractors resume abandoned projects, meet financial obligations and create employment opportunities. Economic analysts have noted that delayed payments often affect project delivery timelines and place significant pressure on businesses that depend on government contracts.
The government explained that the debt clearance followed a verification exercise designed to ensure transparency and accountability in the disbursement process.
Officials said the intervention would improve confidence in government procurement processes while boosting infrastructure development across various sectors.
Stakeholders have welcomed the move, noting that prompt settlement of contractual obligations is critical to sustaining economic growth and encouraging private sector participation in public projects.
The debt payments also come amid broader efforts by the government to stimulate economic activity and address challenges facing businesses across the country.
Source: Ministry of Finance reports.
