The Federal Government has officially disbursed payments to more than 1,240 contractors across various ministries, departments, and agencies to settle verified outstanding obligations. The Ministry of Finance announced the development on Monday, stating that after a thorough verification and reconciliation process, it has validated the claims submitted by contractors.
According to a statement signed by Mary-Ann Duke, the Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, contractors with verified claims of N100 million or less were prioritized in the latest disbursement round. This move comes after months of growing concern over unpaid government contracts.
Background of Unpaid Contracts
In January, frustrated contractors staged a protest at the ministry’s headquarters in Abuja, blocking access to the then Minister of State for Finance, Doris Uzoka-Anite, as they demanded prompt settlement of their outstanding debts. The protest also drew the legislature’s attention. Last July, the Senate constituted a committee to engage the finance ministry and other relevant agencies on the backlog of debts owed to contractors by the Nigerian Government.
Impact on Businesses
The payments announced on Monday could bring swift relief to businesses, especially indigenous firms and small to medium-sized enterprises that have faced months of delayed payments from the government. This initiative promises to offer immediate liquidity support nationwide, reaffirming the Federal Government’s dedication to fulfilling its financial commitments, the statement emphasized.
Additionally, the ministry highlighted that these disbursements will enable affected contractors to return to project sites, pay their workers, and settle with suppliers. In recent months, the government has verified and processed over N700 billion in owed obligations to local contractors, with about N436.6 billion settled in May alone.
Prioritizing Smaller Contractors
Prioritizing smaller contractors aims to extend these benefits across various sectors and regions, helping businesses stay operational and safeguarding jobs. The ministry expressed optimism that these payments will restore confidence among contractors, suppliers, and other service providers working with the government.
