Finance Ministry Clears 1,240 Contractor Payments

Nigeria’s Federal Ministry of Finance has approved payments to over 1,240 contractors working across various Ministries, Departments, and Agencies (MDAs), with priority given to claims below ₦100 million.

The decision, confirmed in a statement on Monday, marks a significant step in resolving longstanding debts owed to businesses engaged by the government.

Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, explained that the approvals followed a meticulous verification and reconciliation process.

“The exercise prioritises verified claims under ₦100 million to ensure that smaller contractors receive timely payment,” Duke stated, emphasising the ministry’s commitment to fairness and accountability.

This initiative is part of a broader effort to address legacy debts accumulated over the years and alleviate cash-flow pressures for businesses that provide goods and services to government agencies. By focusing on smaller payments first, the ministry aims to empower businesses most affected by delayed payments, thereby promoting continuity and stability in operations.

Headquarters of Nigeria’s Federal Ministry of Finance. Credit: Premium Times

The ministry’s approach also signals a push for enhanced transparency in government financial management. By publicly communicating the payment criteria and prioritising verified claims, officials hope to rebuild trust with stakeholders and reinforce responsible governance practices.

Financial analysts welcomed the move, noting that timely settlement of contractual obligations could stimulate economic activity and reinforce confidence in government contracts.

With this exercise underway, the ministry is expected to gradually clear larger claims, ensuring comprehensive settlement across all outstanding obligations to contractors.

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Tope Oke

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