The Federal Government has commenced the payment of N18bn in outstanding severance benefits to 2,700 former workers of the defunct Nigeria Airways, more than two decades after the national carrier was liquidated.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Friday during a press briefing at the Federal Ministry of Finance in Abuja.
Oyedele said 2,100 former workers in batches one to seven had already received their benefits, while another 600 beneficiaries in batches eight and nine had been cleared for payment.
“Altogether, this represents N18bn in benefits for 2,700 former workers,” he said.
The minister said the payment followed a directive by President Bola Tinubu to resolve the long-standing obligation to the former workers.
According to him, many of the beneficiaries had grown old while waiting for their entitlements, while some had died, leaving their families to pursue the outstanding payments.
“For more than two decades, following the liquidation of Nigeria Airways, many former employees have waited for their outstanding severance benefits. Some have grown old waiting. Some have sadly passed away, leaving their families to pursue what was legitimately due to them,” Oyedele said.
He acknowledged that the settlement could not fully compensate the beneficiaries for more than two decades of waiting, but said the government had decided to confront inherited obligations rather than allow them to remain unresolved.
“We recognise that no payment today can fully compensate for more than two decades of waiting, but it is important that government confronts these long-standing obligations rather than allowing them to remain unresolved for another generation,” he added.
Oyedele explained that the payments followed extensive verification, including biometric capture and validation of the beneficiaries’ personal and banking information.
He said the process was necessary to prevent fraudulent claims and ensure that only verified beneficiaries received the payments.
The minister said further verification would be undertaken to resolve cases involving outdated information, incorrect bank details and beneficiaries who had died before receiving their entitlements.
For deceased beneficiaries, he said payments would be made to their documented next-of-kin or estates after the completion of the required legal processes.
Responding to questions on whether the severance benefits had been adjusted for inflation after more than 20 years, Oyedele said the government was paying the amounts documented and verified.
He acknowledged that inflation had substantially eroded the value of the money over the period but said there was no provision for inflation adjustment in the settlement.
The minister said the payments were being made in batches so that verified beneficiaries would not continue to wait while outstanding claims were being processed.
He added that the exercise covered different categories of former Nigeria Airways employees, without distinction between junior and senior workers.
Oyedele said the payment was part of the Federal Government’s broader efforts to clear verified inherited obligations, including outstanding benefits to pensioners and debts owed to indigenous contractors.
He disclosed that more than 12,000 indigenous contractors had also received payments as part of the exercise.
According to him, the government initially prioritised smaller contractors owed N50m or less before extending payments to those with verified claims of up to N100m.
He said larger claims running into billions of naira could be addressed separately through negotiations and instruments such as promissory notes.
The minister said the approach was intended to prioritise small businesses that required the funds to meet salaries and other immediate obligations.
He warned contractors against paying commissions or inducements to government officials to facilitate the payment of verified claims, describing such demands as illegal.
Oyedele said the government was also taking steps to prevent another accumulation of unpaid obligations by making the budget more realistic and ensuring that capital expenditure commitments were backed by identifiable funding sources.
“We will do our best to ensure that the accumulated obligations of the past do not repeat themselves,” he said.
The minister apologised to the former Nigeria Airways workers for the prolonged delay, stressing that the payments were their entitlements and not favours from the government.
