Nigeria clears ₦700bn contractor debts

The Federal Government of Nigeria>>>, through its Nigeria — Federal Ministry of Interior (Nigeria)>>>, has approved and processed payments exceeding ₦700 billion in verified outstanding obligations to over 1,240 local contractors. This initiative, which saw ₦436.6 billion disbursed in May alone, aims to settle long-standing debts, inject liquidity into the economy, and support business activities across the country. Priority was given to contractors with claims of ₦100 million or less, a strategy designed to benefit indigenous firms and small and medium-sized enterprises (SMEs). The payments follow a comprehensive verification and reconciliation exercise to ensure the authenticity of claims. This action is part of the government's broader strategy to address inherited liabilities, strengthen public financial management, and restore confidence among contractors and service providers, who have historically faced challenges due to delayed payments.