The Federal Ministry of Finance has processed over N700 billion in verified debt owed to contractors in Nigeria, with priority given to claims below N100 million.
The payments cover certified obligations linked to completed government projects across different sectors.
In the latest round alone, the ministry approved settlements for over 1,240 contractors. Officials say a large share of the disbursement went to small and medium-sized firms affected by long payment delays.
“The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations,” the statement said.
The ministry also noted that about N436.6 billion was processed in May, making it one of the strongest monthly releases in recent months.
Earlier in January 2026, the government released N152 billion after contractor groups carried out activities, including protests led by the Association of Indigenous Contractors of Nigeria (AICAN).
That protest forced discussions with the Ministry of State for Finance, led by Doris Uzoka-Anite. The Senate later stepped in and set up a committee to engage the ministry and ensure a resolution to outstanding payments.
Contractor associations estimate that total verified liabilities stand at about N4 trillion, covering capital and infrastructure projects executed before and during the 2024 fiscal cycle.
While the 2026 Appropriation Bill set aside N100 billion for contractor debts, many groups say the figure falls far short of what is owed, and they haven’t stopped pressing for comprehensive settlement.
For many small firms, the payments provide short-term relief. Contractors say the inflows help restart stalled projects in Nigeria, settle workers’ wages, and clear debt owed to suppliers.
Some also point to reduced stress from banks and lenders after months of limited cash flow caused by unpaid government jobs.
The Finance Ministry maintains that all payments go through strict verification checks before release. Funds are paid directly through Central Bank remittances into contractors’ commercial bank accounts, a system officials say improves traceability and reduces leakages.
