The Federal Government has moved to ease financial pressures on contractors by approving the payment of verified outstanding obligations owed to more than 1,240 contractors across Ministries, Departments and Agencies (MDAs).

The approval followed an extensive verification and reconciliation exercise conducted by the Federal Ministry of Finance to confirm the authenticity of pending claims and ensure that only legitimate obligations are settled.

According to a statement issued by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, the exercise forms part of the government’s broader commitment to strengthening fiscal discipline while addressing long-standing payment obligations owed to service providers and contractors.

The ministry said priority is being given to contractors with claims below N100 million, a move expected to provide immediate relief to small and medium-scale businesses that depend heavily on government contracts for their operations.

Industry observers say the development could improve cash flow within the private sector, support ongoing projects, and stimulate economic activity by enabling affected contractors to meet financial commitments, including salaries, supplier payments, and project execution costs.

The government maintained that the verification process was designed to promote transparency, accountability, and value for public expenditure, while ensuring that genuine creditors receive their payments without undue delay.

The latest approval is also expected to strengthen confidence among contractors and other stakeholders doing business with government institutions, particularly as efforts continue to improve public financial management and restore trust in government procurement processes.

Officials say the settlement of verified claims aligns with ongoing reforms aimed at enhancing budget implementation, reducing the backlog of outstanding liabilities, and supporting economic stability across key sectors of the economy.