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.

Julius Omodayo-Owotuga popularly known as ‘JB’ is a Finance expert with huge experience in Finance, Risk Management, Treasury, Internal Controls, General Administration, Procurement, and Information Technology.

While at Forte, he was a member of the Executive Management Team that restructured a then moribund company into a vibrant industry player.

He equally led the capital restructuring, acquisitions, debt capital raise, maiden credit rating and divestment initiatives. Prior to joining Forte Oil Plc, he had responsibility for the Asset and Liabilities Management function at the Africa Finance Corporation.

Julius Omodayo-Owotuga is a KPMG trained finance professional who possesses extensive investment experience spanning Financial Services, Power and Oil & Gas sectors with a proven track record of significant achievements.

His two decades work experience spans blue chip companies such as KPMG; Standard Chartered Bank; Africa Finance Corporation (AFC); Forte Oil Plc, MBC International Bank (Now First Bank of Nigeria Limited) and Geregu Power Plc.

JB is an alumnus of Oxford University’s Said Business School, United Kingdom, IE Business School, Madrid, Spain and the University of Lagos, Lagos, Nigeria. He has a B.Sc. in Accounting and a Masters in Business Administration (with distinction).

He is a CFA Charter Holder; a Fellow of The Institute of Chartered Accountants of Nigeria (ICAN), The Chartered Institute of Taxation of Nigeria (CITN) and The Institute of Credit Administration.