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.

The National Bureau of Statistics (NBS) stated this in its Nigerian Domestic and Foreign Debt Report for Q3 2022, released in Abuja on Tuesday.

Public debt is known as the amount of money owed by a government to its creditors, which might include bondholders, banks, and other financial organizations.

It results from the government borrowing money to fund operations, invest in infrastructure, or respond to catastrophes such as natural disasters or economic downturns.

Public debt is typically stated as a proportion of a country’s GDP. It can have an impact on the economy by influencing a country’s ability to borrow more in the future, currency exchange rate, and credit rating.

According to the research, Nigeria’s public debt stock, which includes both external and domestic debt, increased by 2.84 percent in the third quarter of 2022.

According to the report, external debt amounted to N17.14 trillion (39.66 billion USD) in the third quarter of 2022, while domestic debt reached N26.91 trillion (62.25 billion dollars).

“However, the share of external debt to total public debt stood at 38.92 percent in Q3 2022, while domestic debt was recorded at 61.08 percent.”

Furthermore, the research revealed that the Federal Government’s share of domestic debt was 80.07 percent in the third quarter of 2022.

According to the statistics, Lagos State will have the highest internal debt of N877.03 billion in the third quarter of 2022.

Delta came in second with N272.61 billion, and Ogun came in third with N241.78 billion.

According to the study, Jigawa had the lowest debt at N44.40 billion, followed by Kebbi and Katsina, which had debts of N60.13 billion and N62.37 billion, respectively.