There is a palpable sense of relief as the Federal Government’s has granted approval to settle outstanding debts owed to 1,240 contractors.
According to a statement released on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, priority will be given to verified claims valued below ₦100 million.
The approval by the federal government follows a comprehensive verification, reconciliation, and validation exercise carried out to accurately determine genuine outstanding obligations owed by the Federal Government.
The process, she noted, was designed to clean up legacy liabilities and ensure that only verified and legitimate contractor claims are processed for payment.
As part of the first phase of implementation, priority was given to contractors with confirmed debts below ₦100 million, in line with the government’s structured approach to clearing arrears in a transparent and fiscally responsible manner.
The initiative is aimed at addressing long-standing arrears, improving liquidity for businesses, particularly small and medium-scale contractors and restoring confidence in government contract execution.
It also reflects ongoing efforts by the Ministry to strengthen financial discipline, reduce inherited debt burdens, and enhance transparency and accountability in public expenditure management across MDAs.