FG has cleared payment backlog for 1,240 contractors over econmic concerns.
NewsOnline Nigeria reports that the Federal Government has approved the payment of verified outstanding contractual obligations owed to more than 1,240 contractors across Ministries, Departments and Agencies (MDAs), in a move aimed at addressing long-standing payment delays that have strained businesses and stalled project execution nationwide.
The approval follows the completion of a nationwide verification and reconciliation exercise designed to validate claims submitted by contractors awaiting settlement for completed projects and services rendered to government institutions.
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The development is expected to bring relief to affected contractors, many of whom have faced cash flow challenges and operational setbacks due to prolonged delays in the settlement of government obligations.
In a statement issued on Monday, Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, said the approval was granted after a comprehensive review process to ensure that only legitimate and verified claims were considered for payment.
According to the statement, the verification exercise was undertaken to improve transparency, accountability and accuracy in the management of public liabilities while eliminating questionable claims.
“The approval followed a verification and reconciliation exercise to validate outstanding obligations,” the statement noted.
The Ministry of Finance disclosed that priority would be given to verified contractual claims valued below N100 million, a decision expected to benefit small and medium-sized contractors that have been disproportionately affected by delayed government payments.
The approval also highlights the scale of unpaid contractual obligations accumulated across MDAs, raising concerns about the impact of delayed settlements on business sustainability, job retention and project delivery in critical sectors of the economy.
Industry stakeholders have repeatedly warned that persistent delays in settling government obligations discourage private sector participation in public projects, increase financing costs and weaken confidence in government procurement processes.
The government, however, said the initiative forms part of broader efforts to clear verified debts, support affected businesses and stimulate economic activity through improved liquidity and timely fulfilment of contractual commitments.
Analysts say the effectiveness of the intervention will depend on the speed of implementation and whether the government can prevent the accumulation of new arrears going forward.
