The Federal Ministry of Finance has started fresh payments and actively eased contractors financial pressure nationwide.
It actively cleared over ₦700 billion in verified debts that the government owed local contractors.
Contractor Debt Clearance
The process followed months of verification and reconciliation as officials confirmed genuine outstanding obligations.
First, the ministry prioritised contractors with claims of ₦100 million or less in payments.
As a result, small and medium-sized enterprises received support after struggling with unpaid contracts.
Consequently, many businesses expect relief through revived projects, stronger cash flow, and supplier repayments.
Cash Flow Boost Impact
Officials actively applied strict checks and verified the authenticity of all submitted claims.
In addition, Mary-Ann Duke confirmed that over 1,240 contractors received clearance in this phase.
She explained that this action reflects the government’s commitment to meeting verified obligations nationwide.
Meanwhile, the ministry processed about ₦436.6 billion in May and accelerated arrears clearance.
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Furthermore, the programme aims to stabilise contractors, sustain jobs, and support ongoing operations.
It also ensures continuity of government-funded infrastructure and service delivery projects across sectors.
Over time, contractors have faced financial strain due to delayed government payments.
These delays disrupted projects, caused job losses, and forced firms into costly borrowing.
Earlier this year, aggrieved contractors protested at the ministry over unpaid obligations in Abuja.
This protest drew national attention and pushed the Senate to establish an intervention committee.
In response, the Federal Government intensified efforts and actively cleared verified liabilities.
Additionally, it allocated ₦100 billion in the 2026 budget to reduce contractor debts.
Although contractor groups welcomed this move, they argued the allocation remains insufficient.
They stressed that outstanding liabilities still run into trillions of naira nationwide.
Nevertheless, the latest payments signal progress and gradually ease a long-standing financial dispute.
