The Civil Rights Group for Economic Reforms (CRGER) has applauded the Federal Government and the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, over the approval and release of verified payments to more than 1,240 contractors across ministries, departments and agencies, describing the move as a significant intervention capable of stimulating economic activity and restoring confidence in public financial management.

In a statement issued on Tuesday and signed by its Executive Coordinator, David Matthew, the group said the decision to prioritise verified contractual obligations, particularly claims valued at N100 million and below, demonstrated the administration’s commitment to accountability, transparency and support for indigenous businesses.

According to the organisation, settling outstanding obligations owed to genuine contractors sends a strong signal that the government is determined to honour its commitments while ensuring that businesses that have delivered public projects are not left to bear the burden of delayed payments.

CRGER noted that the release of the funds would inject much-needed liquidity into the economy at a time when many local enterprises continue to grapple with rising operational costs, inflationary pressures and limited access to affordable credit facilities.

“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 N100 million and below, many of whom rely on prompt payments to sustain operations and retain workers.”

The group observed that the processing of more than N700 billion in verified obligations, including approximately N436.6 billion reportedly disbursed within May alone, represents one of the most significant interventions aimed at supporting local enterprises and stimulating economic activities.

It added that delayed payments had placed considerable strain on many indigenous contractors and small and medium-sized enterprises, affecting their ability to execute projects, pay workers and meet obligations to suppliers.

“The release of these funds will enable businesses to return to project sites, settle suppliers, meet payroll obligations and contribute more effectively to economic growth,” the group said.

CRGER also commended Oyedele for placing due process and accountability at the heart of public financial administration, noting that the insistence on verification before payment had helped strengthen confidence in government institutions.

“We must particularly commend Mr Taiwo Oyedele for his emphasis on accountability, transparency and fiscal discipline,” the statement added.

“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 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.”

The organisation further argued that the intervention would generate positive ripple effects across several sectors of the economy by preserving jobs, supporting household incomes and accelerating the completion of critical infrastructure projects.

It urged the Federal Government to sustain the momentum by ensuring that future contractual obligations are settled promptly, 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 said.

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

CRGER reaffirmed its support for policies that promote fiscal responsibility, economic reforms and sustainable development, expressing optimism that the government’s current approach to public finance management would continue to deliver positive outcomes for businesses and citizens alike.