The Federal Government has begun disbursing N18 billion in overdue severance benefits to 2,700 former workers of the now-defunct Nigeria Airways, more than twenty years after the airline was liquidated.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced this on Friday during a press conference at the Federal Ministry of Finance in Abuja.
Oyedele stated that 2,100 former workers across batches one to seven had already received their benefits, while another 600 beneficiaries from batches eight and nine were cleared for payment.
“Altogether, this represents N18 billion in benefits for 2,700 former workers,” he said.
He explained that the payment was made following a directive from President Bola Tinubu to address the longstanding obligation to the former employees.
According to him, many of the beneficiaries had grown old while waiting for their entitlements, and some had passed away, leaving their families to pursue the owed 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 mentioned.
He admitted that the settlement could not fully compensate the beneficiaries for the two-decade-long delay, but stressed that the government had decided to confront these inherited obligations rather than leave them unresolved.
“We recognize that no payment today can fully compensate for more than two decades of waiting, but it is important that government addresses these long-standing obligations rather than allowing them to persist for another generation,” he added.
Oyedele detailed that the disbursements followed extensive verification procedures, including biometric capture and validation of the beneficiaries’ personal and banking information.
He emphasized that this process was essential to prevent fraud and ensure only verified beneficiaries received funds.
Further verification will be conducted to resolve issues involving outdated information, incorrect bank details, or beneficiaries who passed away before collecting their entitlements.
For deceased beneficiaries, payments will be made to their documented next-of-kin or estates after legal procedures are completed.
In response to questions about whether the severance benefits had been adjusted for inflation over the past 20 years, Oyedele stated that the government was paying the verified and documented amounts as they stood.
While acknowledging that inflation has significantly diminished the value of the money over time, he said there is no provision for inflation adjustment in the settlement.
Payments are being made in batches to ensure verified beneficiaries do not experience indefinite delays while pending claims are processed.
He added that the exercise includes various categories of former Nigeria Airways employees, with no distinction between junior and senior staff.
Oyedele emphasized that the payment initiative is part of the broader effort by the Federal Government to clear verified owed obligations, including pension benefits and debts owed to local contractors.
He revealed that over 12,000 indigenous contractors have also received payments as part of the process.
Initially, the government prioritized smaller contractors owed N50 million or less before extending payments to those with verified claims up to N100 million.
Larger claims running into billions of Naira may be addressed separately through negotiations and financial instruments like promissory notes.
The approach aims to prioritize small businesses that need funds for salaries and immediate operational costs.
He cautioned contractors against paying bribes or inducements to officials to expedite verified claims, calling such acts illegal.
Oyedele stated that the government is also working to prevent future unpaid obligations by making the budget more realistic and ensuring capital expenditure commitments are backed by clear funding sources.
“We will do our best to ensure that the accumulated obligations of the past do not repeat themselves,” he affirmed.
The minister apologized to former Nigeria Airways workers for the prolonged delay, emphasizing that these payments are their rightful entitlements, not special favors from the government.
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