‘Contractors’ Payment Will Boost Economy, Shows Fiscal Discipline’

The Civil Rights Group for Economic Reforms (CRGER) has commended the Federal Government and the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, over the approval and release of funds to more than 1,240 contractors across ministries, departments and agencies.

The group described the development as a major boost for the local economy and a demonstration of responsible economic management.

In a statement signed by its Executive Coordinator, David Matthew, on Tuesday, CRGER said the decision to prioritise verified contractual obligations, especially claims below ₦100 million, showed the government’s commitment to accountability, transparency and support for indigenous businesses.

The group said the approval of payments after what it called a thorough verification and reconciliation process had sent a strong signal that the government was determined to restore confidence in public finance management.

It added that the move would ensure that genuine contractors were not left stranded after executing projects for the government.

According to CRGER, the release of the funds would inject much-needed liquidity into the economy at a time when many local businesses are battling rising operational costs and limited access to affordable financing.

“We commend the Federal Government and particularly the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, for demonstrating a clear commitment to responsible fiscal management and the timely settlement of verified contractual obligations owed to local contractors across the country,” the statement read.

“This decision is not only an act of financial responsibility but also a strong statement that government is prepared to honour its commitments and support businesses that contribute to national development.

“We are particularly encouraged by the deliberate prioritisation of smaller contractors and businesses with verified claims of ₦100 million and below, many of whom rely on prompt payments to sustain operations and retain workers.”

The group said the processing of over ₦700 billon in verified obligations, including about ₦436.6bn in payments within May alone, represented one of the most significant interventions aimed at supporting local enterprises and stimulating economic activities.

CRGER noted that many indigenous contractors and small and medium-scale enterprises had faced serious challenges due to delayed payments.

It said the release of the funds would enable businesses to return to project sites, settle suppliers, meet payroll obligations and contribute more effectively to economic growth.

The organisation also praised Oyedele for placing due process and accountability at the centre of government financial operations.

It said the insistence on verification before payment had helped to strengthen confidence in public institutions and protect public resources.

“We must particularly commend Mr Taiwo Oyedele for his emphasis on accountability, transparency and fiscal discipline. At a time when many Nigerians are demanding greater efficiency in public spending, the minister has demonstrated that government obligations can be settled in a manner that is both transparent and consistent with established procedures,” the group said.

“The verification exercise undertaken before the approvals were granted reinforces public confidence and ensures that only legitimate claims are funded. This is the kind of institutional discipline that strengthens governance and protects public resources.”

It added that the payments would have positive ripple effects across several sectors of the economy by creating jobs, supporting household incomes and accelerating the completion of critical infrastructure projects.

The group urged the Federal Government to sustain the momentum by ensuring the prompt settlement of future obligations, while continuing reforms aimed at improving the ease of doing business and strengthening the productive capacity of local enterprises.

“The release of these funds is ultimately good news for ordinary Nigerians because when contractors are paid, workers receive their salaries, suppliers receive payment for services rendered, projects move forward and economic activities expand,” the statement added.

“This intervention will undoubtedly contribute to growth, stability and renewed confidence in the economy.”