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FG Clears N700bn Contractor Debt, Prioritises Small Businesses

The Federal Ministry of Finance says it has processed more than N700 billion in verified debts owed to local contractors, with firms holding claims of N100 million or less given priority in the latest round of payments.
According to a statement by the Minister’s Senior Special Assistant on Communication and Press Secretary, Mary-Ann Duke, the approvals followed a comprehensive verification and reconciliation exercise aimed at authenticating outstanding contractor claims. The payments are expected to ease cash flow pressures on indigenous businesses and SMEs.

The development comes after months of agitation over unpaid government obligations, including protests by contractors and intervention by the Senate. The government says the debt clearance exercise is part of broader efforts to settle verified liabilities, improve fiscal management, and restore confidence in public procurement processes.

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