The Nigerian government has approved the release of payments for arrears owed to more than 1,240 contractors, a move aimed at addressing mounting complaints about long-running non-payment.
Key takeaways
- The Federal Ministry of Finance said it has cleared liabilities involving over 1,240 contractors.
- Payments will first focus on claims valued at less than N100 million.
- Officials said the decision followed a verification and reconciliation exercise to validate outstanding amounts.
- The announcement responds to contractor protests over unpaid debts said to total N4 trillion since 2024.
- In prior weeks, contractors reportedly blocked access to the finance ministry due to repeated delays.
Government approval follows verification
Finance ministry spokesperson Mary-Ann Duke said the approvals were communicated in a statement on Monday. The government indicated that it will begin by addressing smaller debt claims—those below N100 million—while continuing the process for other obligations.
In the statement, the Federal Government explained that the move was enabled by a detailed check-and-match procedure intended to ensure that the obligations being paid truly correspond to verified contractor claims.
Contractors had protested over large arrears
The decision comes amid pressure from local contractors who have complained that they have not been paid debts amounting to N4 trillion since 2024. Contractors have repeatedly highlighted the impact of the payment delays on businesses and workers tied to public procurement and related government projects.
At several points, contractors also staged demonstrations that included barricading the Ministry of Finance, underscoring frustration with the prolonged timeline for settling the arrears.
