FG to Pay Over 1,240 Contractors as Debts Clearance Begins

The Federal Government has approved the payment of outstanding fees owed to more than 1,240 contractors across various Ministries, Departments and Agencies (MDAs) for completed projects.

According to a statement released on Monday by the Federal Ministry of Finance, the payments followed a detailed verification and reconciliation exercise to confirm genuine outstanding obligations.

The statement, signed by the Senior Special Assistant on Communications and Press Secretary to the Minister of Finance, Mary-Ann Duke, noted that contractors with verified claims below ₦100 million were given priority in the current phase.

The ministry explained that the move is part of broader efforts to clear inherited debts, improve liquidity for businesses, and strengthen transparency in government financial obligations.

It added that the latest approvals are expected to provide immediate relief to indigenous contractors and small and medium-sized enterprises (SMEs), enabling them to return to project sites, pay workers, and settle suppliers.

In May alone, the ministry said about ₦436.6 billion in payments were processed, describing it as part of an accelerated effort to unlock funds and support economic activity.

The government also stated that prioritising smaller contractors was aimed at spreading the impact of disbursements across sectors and regions while sustaining jobs and ongoing projects.

The payment exercise comes after repeated protests by indigenous contractors under the All Indigenous Contractors Association of Nigeria (AICAN), who had earlier alleged that unpaid debts were pushing members into financial distress, including loss of assets to banks.

The group had claimed that outstanding obligations stood at about ₦4.7 trillion, urging the government to fully settle all verified debts.