FG Prioritises Small Claims in Payments to Over 1,240 Contractors

News Article: Federal Ministry of Finance Approves Payments to 1,240 Contractors

The federal government has approved payments to more than 1,240 contractors with verified claims of N100 million or less. This move is expected to provide immediate liquidity support to businesses across the country.

Mary-Ann Duke, the Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, said that contractors prioritised for payment in this batch are those with verified claims in the region of N100 million or less. The approval was the outcome of a thorough verification and reconciliation exercise to confirm outstanding obligations, which were owed to local contractors.

The payments are meant to provide relief to indigenous businesses, small and medium-sized enterprises, enabling them to get back to work on incomplete projects, pay their workers, and settle with suppliers. The ministry explained that the federal government has processed more than N700 billion in verified obligations owed to local contractors in recent months.

In May alone, approximately N436.6 billion in transactions were processed, indicating a significant speed-up in clearing the backlog. By prioritising smaller contractors, the ministry aims to spread the impact of the disbursements across various sectors and regions, helping businesses sustain operations, preserve jobs, and complete ongoing projects.

The payments are also expected to boost confidence among contractors, suppliers, and service providers doing business with the government. The contractors had previously prevented Doris Uzoka-Anite, the former Minister of State for Finance, from accessing the ministry during a protest led by contractors.

Persecondnews recalls that the contractors had prevented Doris Uzoka-Anite from accessing the ministry during a protest in January.

The payments will enable indigenous businesses and small and medium-sized enterprises to return to project sites, pay workers, and settle suppliers. It's further disclosed that the federal government has processed over N700 billion in verified obligations owed to local contractors in recent months.

The payments will help businesses sustain operations, preserve jobs, and complete ongoing projects. Within May alone, approximately N436.6 billion in transactions were processed, indicating a notable speed-up in clearing the backlog.

The payments will also enable contractors to return to project sites, pay workers, and settle suppliers. It's a significant step in meeting the federal government's financial obligations.

The payments will help stimulate economic growth, create jobs, and boost confidence among businesses. The federal government has prioritised payments to small contractors, ensuring that the impact of the disbursements is spread across sectors and regions.

The payments will provide immediate relief to contractors, enabling them to return to project sites, pay workers, and settle suppliers.

The federal government has processed over N700 billion in verified obligations owed to local contractors in recent months. The payments will help reinforce the federal government's commitment to meeting its financial obligations.

Within May alone, approximately N436.6 billion in transactions were processed. This is a notable speed-up in clearing the backlog.