The Federal Ministry of Finance has approved the settlement of outstanding payments to more than 1,240 contractors engaged by various Ministries, Departments and Agencies (MDAs), with priority given to verified claims below ₦100 million.

According to a statement issued on Monday by Mary-Ann Duke, Senior Special Assistant on Communication and Press Secretary to the Minister of Finance, the approval followed a comprehensive verification and reconciliation exercise aimed at confirming legitimate outstanding obligations.

She explained that the initiative is focused on addressing legacy debts owed to contractors, improving liquidity for businesses, and strengthening transparency in government payment processes.

The ministry noted that prioritising lower-value verified claims is intended to ease cash flow pressures on small and medium-scale contractors while ensuring orderly settlement of outstanding obligations across MDAs.