The Federal Government has approved the payment of outstanding debts owed to more than 1,240 contractors across the country, marking a significant step toward addressing long-standing financial obligations.

The development was disclosed on Monday in a statement issued by the spokesperson for the Federal Ministry of Finance, Mary-Ann Duke.

According to the statement, the government will prioritise the settlement of verified debts valued at less than N100 million as part of efforts to ease the burden on contractors and stimulate economic activities.

The Ministry explained that the approvals followed a comprehensive verification and reconciliation exercise carried out to confirm the authenticity of outstanding claims and ensure transparency in the payment process.

“The approvals were granted after a thorough verification and reconciliation process to establish legitimate obligations owed to contractors,” the statement noted.

The decision comes months after local contractors staged a series of protests over the non-payment of debts reportedly amounting to about N4 trillion since 2024.

On several occasions, aggrieved contractors barricaded the Federal Ministry of Finance in Abuja, demanding the immediate settlement of outstanding payments and accusing the government of delaying the release of funds for completed projects.

The prolonged delay had sparked concerns among contractors, many of whom claimed the unpaid debts were affecting their operations, workforce retention and ability to execute ongoing projects.

The Federal Government said the payment initiative reflects its commitment to honouring verified contractual obligations while strengthening confidence in public procurement and contract administration.

The ministry did not disclose a specific timeline for the disbursement of funds but assured contractors that the payment process would be carried out in an orderly and transparent manner.