By Peace Erewunmi

The Federal Ministry of Finance has approved payments to 1,240 local contractors across various Ministries, Departments, and Agencies (MDAs) of the Federal Government.

The approval is part of ongoing efforts to settle verified outstanding obligations owed to contractors and stimulate economic activity across the country.

According to official reports, the payments were processed after a verification and reconciliation exercise to ensure that only legitimate and duly certified claims were approved for settlement.

The initiative primarily targets small and medium-scale contractors with verified claims, aiming to ease financial pressure on businesses, support job retention, and boost project execution across sectors.

Authorities noted that the disbursement is part of broader fiscal measures to clear inherited liabilities while improving transparency and efficiency in public financial management.

The Federal Government has in recent months processed substantial payments running into hundreds of billions of naira to contractors as part of its debt clearance strategy.

Officials say the move is expected to restore confidence among contractors and improve the pace of ongoing government projects nationwide.

As of the time of filing this report, the Ministry reaffirmed its commitment to continuing the verification and payment process until all eligible outstanding obligations are addressed.