FG Moves to Clear Debts Owed To Over 1,240 Small Contractors
By Patience Ikpeme
The Federal Government has approved the payment of contract debts owed to more than 1,240 contractors across Nigeria to give local businesses quick cash to run their operations.
A statement from the Federal Ministry of Finance on Monday said that the government chose to focus on small and medium businesses by paying those who are owed 100 million Naira or less first.
The statement, which was signed by the ministry’s Director of Press, Mrs. Efe Ovuakporie, said the action shows that the government wants to pay back what it owes and help local companies succeed.
According to Mrs. Ovuakporie, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, approved the money after the ministry carefully checked and confirmed that the contracts were genuinely executed.
Speaking on how the money will help the country, Mrs. Ovuakporie said: “The release of funds is expected to provide immediate relief to hundreds of businesses, enabling them to return to project sites, pay workers, settle suppliers, meet financial commitments, and support economic activity across the country.”
The ministry said the contractors who received the money worked for different government ministries, departments, and agencies. By choosing to pay many small contractors instead of giving all the money to just a few big companies, the government wants the financial help to touch different parts of Nigeria.
The spokesperson also shared details of how much the government has spent to clear these debts recently.
“Over the past few months, the Federal Government has processed payments exceeding ₦700 billion across various categories of verified obligations owed to local contractors. Within the month of May alone, approximately ₦436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth,” she said.
For many of the business owners, receiving this money is a major relief. It gives them the assurance they need to keep their businesses open, protect the jobs of their workers, finish uncompleted projects, and help the Nigerian economy recover.
The ministry added that this move will make contractors, suppliers, and service providers trust the government more when doing business with them in the future.
Explaining the ministry’s plan going forward, Mrs. Ovuakporie said: “This development reflects the Ministry’s commitment to translating policy objectives into tangible outcomes by resolving inherited obligations in a transparent and fiscally responsible manner.”
She added that the government will continue to manage the country’s money carefully while making sure it pays real debts on time.
“The Ministry remains committed to maintaining fiscal discipline while ensuring that legitimate obligations are settled in a timely manner going forward to substantially reduce outstanding liabilities over time, strengthen confidence in public financial management, and support the effective delivery of public services and infrastructure,” Mrs. Ovuakporie said.
