Over two decades after Nigeria Airways liquidation, the Federal Government says it has started paying verified beneficiaries in batches following President Tinubu’s directive.
By Aisha Abubakar
ABUJA, Nigeria — The Federal Government has commenced payment of N18 billion in outstanding severance benefits to 2,700 former Nigeria Airways workers, 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.
FG Moves to Settle Long-Delayed Severance Claims
Oyedele said the payment exercise is tied to a presidential directive aimed at resolving inherited obligations owed to former employees of the defunct airline.
According to him, 2,100 workers across batches one to seven have already received their benefits, while another 600 beneficiaries in batches eight and nine have been cleared for payment.
“Altogether, this represents N18bn in benefits for 2,700 former workers,” the minister stated.
Two Decades of Waiting—Families Pursue Entitlements
Speaking on the timeline, Oyedele noted that many former beneficiaries had grown old while waiting for their entitlements, and some had reportedly died before payment could be completed.
He explained that such deaths meant family members had to pursue the outstanding benefits through legitimate processes.
“For more than two decades… 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.
Government Says Payment Cannot Fully Undo the Delay
The finance minister acknowledged that any payment made now cannot fully compensate for years of delay and the economic impact of waiting.
However, he argued that the government’s responsibility is to confront long-standing obligations rather than let them remain unsettled “for another generation.”
“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.
Verification Using Biometric Capture and Banking Validation
Oyedele said the severance benefits were processed only after extensive verification, including biometric capture and validation of beneficiaries’ personal and banking information.
He emphasised that the verification framework is intended to prevent fraudulent claims and ensure that only verified individuals receive payments.
The minister added that further verification would be conducted where there were issues such as outdated information, incorrect bank details, and cases where beneficiaries had died before receiving their entitlements.
Payments for Deceased Beneficiaries to Next-of-Kin
For deceased beneficiaries, Oyedele said payment would be made to their documented next-of-kin or estates, subject to the completion of required legal processes.
No Inflation Adjustment—Amounts Paid as Documented
When asked whether severance benefits had been adjusted for inflation after more than 20 years, Oyedele said the government was paying amounts as documented and verified.
He acknowledged that inflation has eroded the real value of the money over time, but noted there was no provision for inflation adjustment in the settlement.
Batch Payments to Prevent Further Waiting
Oyedele said the payment exercise is being conducted in batches to ensure verified beneficiaries do not continue waiting while other claims are still being processed.
He also said the exercise applies to different categories of former Nigeria Airways employees without distinction between junior and senior staff.
FG Says Payment Follows Tinubu’s Directive
The minister linked the settlement to a presidential push to address long-standing federal obligations to affected citizens.
Contractors Also Benefit From Broader Settlement Plan
Oyedele said the Nigeria Airways payment is part of wider efforts to clear verified inherited obligations, including outstanding benefits to pensioners and debts owed to indigenous contractors.
He said over 12,000 indigenous contractors have received payments, with the government prioritising smaller claims first—starting with contractors owed N50 million or less, then extending to verified claims up to N100 million.
For larger claims running into billions, he said the government may handle them separately through negotiations and instruments such as promissory notes.
Government Warns Against Illegal Facilitation
Oyedele warned contractors against paying commissions or inducements to officials to push payments of verified claims, describing such actions as illegal.
Preventing a Repeat Through Better Budgeting
He said the Federal Government is also working to stop another buildup of unpaid obligations by making the budget more realistic and ensuring capital expenditure commitments are 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.
Conclusion
The finance minister said the government’s approach is anchored on verification, batch payments, and legal processes for deceased beneficiaries. He also apologised to the former Nigeria Airways workers for the delay, stressing that the payments are entitlements, not “favours” from government.
Leave a Reply