By Kofoworola Fakeye
THE FEDERAL Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations.
JKNewsMedia.com reports that the approval was granted by the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, following a verification and reconciliation process carried out by the Ministry to ensure only duly validated obligations qualify for payment.
The payments cover contractors across various Ministries, Departments and Agencies and address long standing payment obligations, particularly those affecting indigenous businesses and small and medium enterprises, the Ministry notes.
It adds that contractors prioritised in the latest batch are those with verified claims in the region of N100 million or less.
The release of funds is also 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 also said the development reflects its commitment to translating policy objectives into tangible outcomes by resolving inherited obligations in a transparent and fiscally responsible manner.
It adds that over the past few months, the Federal Government (FG) has processed payments exceeding N700 billion across various categories of verified obligations owed to local contractors.
Within the month of May alone, about N436.6 billion in transactions were processed, indicating an acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.
By prioritising a large number of smaller contractors rather than concentrating payments among a few large beneficiaries, the Government said it is broadening the economic impact of the disbursements across sectors and regions.
The latest payments are expected to strengthen confidence among contractors, suppliers, and service providers doing business with government by demonstrating commitment to honouring duly verified obligations.
JKNewsMedia.com also reports that the Ministry said the release of funds provides certainty for beneficiaries to sustain operations, preserve jobs, complete ongoing projects, and contribute to economic recovery and growth.
It added that it remains committed to fiscal discipline while ensuring legitimate obligations are settled in a timely manner going forward, with the aim of reducing outstanding liabilities, strengthening confidence in public financial management, and supporting effective delivery of public services and infrastructure.
—
