The Federal Ministry of Finance has approved the settlement of outstanding payments to more than 1,240 contractors working with Ministries, Departments and Agencies, MDAs, with priority given to verified claims below ₦100 million.
Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, Mary-Ann Duke, disclosed this in a statement issued Monday.
According to her, the approvals followed a thorough verification and reconciliation exercise to confirm the authenticity and value of outstanding obligations owed to contractors.
“The exercise places priority on verified claims below ₦100 million,” Duke said, noting that the move is part of the government’s effort to clear legacy debts.
The initiative is aimed at three things:
1. Clearing backlog: Addressing legacy debts owed to contractors by MDAs
2. Easing cash flow: Providing relief to businesses that have been waiting on payments
3. Improving transparency: Strengthening processes around government payment obligations
By prioritising claims under ₦100 million, the Ministry targets a larger number of small and medium contractors who typically face more severe cash flow pressure from delayed payments.
The Ministry said the verification process was designed to ensure only genuine, documented claims are settled, in line with its commitment to prudent management of public resources.
