Federal Government says verified contractors with claims of ₦100 million and below will receive payments as part of efforts to ease liquidity challenges and revive project execution nationwide.
ABUJA — The Federal Government has approved the payment of verified claims owed to 1,240 contractors across various Ministries, Departments and Agencies (MDAs), following months of protests by contractors demanding the settlement of outstanding debts running into trillions of naira.
The approval was granted after a verification and reconciliation exercise aimed at ensuring that only legitimate and validated claims qualify for payment. According to the Federal Ministry of Finance, the beneficiaries are contractors with verified claims of ₦100 million and below.
The government said the move is expected to provide immediate relief to small and medium-sized businesses affected by delayed payments and will help contractors return to project sites, settle outstanding obligations to suppliers, pay workers, and stimulate economic activities across the country.
The development comes months after indigenous contractors under the All Indigenous Contractors Association of Nigeria (AICAN) staged protests in Abuja, accusing the Federal Government of owing contractors trillions of naira for completed projects.
The contractors had repeatedly demanded the release of funds for projects executed and verified by government agencies, arguing that prolonged delays in payment had resulted in loan defaults, business closures, asset seizures by financial institutions, and significant economic hardship.
Government officials stated that the current disbursement forms part of ongoing efforts to clear verified contractor obligations and restore confidence in public procurement and project execution.
The Ministry of Finance emphasized that prioritizing smaller claims would allow a larger number of businesses to benefit from the payments, thereby spreading the economic impact across different sectors of the economy.
