The Federal Government has announced plans to clear outstanding payments owed to contractors who have duly completed verified projects across Ministries, Departments and Agencies, while also continuing the phased payment of the N35,000 wage award arrears to civil servants.

In a statement on Tuesday by the Director of Press and Public Relations, Office of the Accountant General of the Federation, Mr Bawa Mokwa, the government said only contracts awarded through due process and executed according to specification will be honoured.

“The Federal Government has records of contracts executed by MDAs and is meticulous in the payment for these contracts to guarantee value for money spent. Efforts are underway to pay for contracts duly awarded and completed according to specifications,” the Office of the Accountant General of the Federation said in the statement.

The Accountant General’s office reiterated that there would be no payments for contracts not backed by proper documentation, as the government aims to maintain fiscal responsibility and enforce procurement standards.

On workers’ welfare, the OAGF confirmed that the government had commenced the payment of the five-month arrears of the N35,000 wage award in May 2025, with monthly payments scheduled to continue until all arrears are cleared.

“The next payment of the N35,000 wage award will be done in June 2025 after payment of the June 2025 salary,” the statement read.

The wage award, introduced as a palliative following the removal of fuel subsidies, was designed to ease the financial burden on public sector workers amid economic reforms.

The National Assembly, earlier this year, expressed concerns over the wide gap between recurrent and capital expenditures in the 2024 budget, citing the low level of fund releases for capital projects as a major obstacle to achieving tangible development.

At a joint session between the Chairmen of Senate and House Committees on Appropriations and the Presidential Economic Team to review the 2025 Appropriation Bill, Senator Solomon Adeola and Hon. Abubakar Bichi called for increased funding for capital projects in the ongoing 2024 budget.

They argued that capital projects are the most direct way for Nigerians to benefit from government activities, as recurrent expenditures primarily serve a limited segment of the population.

The Senate and the House of Representatives, for the second time, earlier extended the implementation of the capital component of the 2024 budget to December 31, 2025.

With the new deadline of December 31, 2025, Nigeria is now operating two budgets within a single fiscal year: the 2024 budget, which is still being implemented and the 2025 budget, which has already passed and is currently in force.

A source earlier told The PUNCH that all expenses and operations at the ministry were still being executed under the 2024 budget, which has led to widespread delays in payments to contractors and government workers. (PUNCH)