FG Releases Funds to Settle Contractors' Debts in Nigeria

The Federal Government of Nigeria has approved the immediate release of funds to address outstanding payments owed to 1,240 local contractors across various ministries, departments, and agencies (MDAs). This decision was announced on Monday by Mari Ann Duke, the Senior Special Assistant on Communications to the Minister of Finance.

The approval followed an intensive verification and reconciliation exercise aimed at validating the legitimacy of the outstanding obligations. This move comes in response to protests by indigenous contractors against the government, who have claimed that the federal government owes them approximately 4 trillion naira in certified liabilities.

The debts largely stem from capital infrastructure projects executed prior to the 2024 fiscal year. The government's action is seen as a significant step towards resolving the financial issues faced by local contractors.