The Federal Government has commenced the settlement of over ₦700 billion in verified outstanding debts owed to local contractors, approving payments to 1,240 indigenous businesses across the country.
The Ministry of Finance disclosed that more than ₦436 billion was disbursed in May 2026 alone as part of efforts to reduce long-standing liabilities and strengthen infrastructure development.
Officials said contractors with verified claims of ₦100 million and below were given priority in the latest payment cycle to ease financial pressure on small and medium-scale enterprises executing government projects.
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The government explained that the initiative is designed to improve liquidity for contractors, speed up project completion, create employment opportunities, and stimulate broader economic growth.
It also reaffirmed its commitment to fiscal responsibility and timely settlement of legitimate obligations, noting that clearing the backlog would restore confidence in public procurement and enhance project delivery efficiency.
According to the Federal Government, the payment programme is part of wider reforms aimed at addressing inherited debts while ensuring continuity in critical infrastructure projects across the country.
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