FG Clears Over N700bn in Contractor Debts

The Federal Government has cleared more than N700 billion in verified debts owed to local contractors, in a move aimed at boosting liquidity, supporting businesses, and stimulating economic activity.
Officials disclosed that the payments include N436.6 billion disbursed in May, covering certified obligations for completed projects across various sectors of the economy.
The government said settling the outstanding debts demonstrates its commitment to honoring contractual obligations and improving confidence among contractors and investors.
Economic analysts noted that the payments are expected to provide relief for affected firms, enhance cash flow, and enable contractors to meet operational costs, including salaries and project financing.
Stakeholders also believe the debt clearance could accelerate the completion of infrastructure projects and contribute to job creation by improving the financial position of local construction and service companies.
The Federal Government reaffirmed its commitment to fiscal responsibility and timely settlement of verified obligations, stressing that the initiative forms part of broader efforts to strengthen economic growth and support private sector development.
The development has been welcomed by industry operators, who described it as a positive step toward improving the business environment and reducing the financial burden on contractors.