The Federal Government has commenced the payment of N18 billion in outstanding severance benefits to 2,700 former employees of the defunct Nigeria Airways, more than 20 years 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 from batches one to seven have already received their payments, 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 said.
Payment Follows Two Decades of Waiting
According to Oyedele, many former Nigeria Airways employees spent more than two decades waiting for the government to settle their outstanding entitlements.
He noted that some beneficiaries had grown old during the prolonged wait, while others had died before receiving what was owed to them.
“For more than two decades, following the liquidation of Nigeria Airways, many former employees have waited for their outstanding severance benefits,” Oyedele said.
The minister said the payment followed a directive from President Bola Ahmed Tinubu to address the long-standing obligation.
He acknowledged that the settlement could not make up for the lengthy delay but said the government had decided to resolve inherited obligations rather than allow them to continue into another generation.
Verification Conducted Before Payment
Oyedele explained that the government carried out extensive verification before releasing the funds.
The process included biometric registration and validation of beneficiaries’ personal and banking information. The exercise was designed to prevent fraudulent claims and ensure that payments went to legitimate beneficiaries.
However, the minister said additional verification would still be required in some cases.
These include beneficiaries with outdated records, incorrect bank information and former workers who have died. In such cases, their next of kin or estates may need to complete the necessary procedures before payment can be concluded.
No Inflation Adjustment
Responding to questions about whether the benefits had been adjusted to reflect inflation over the more than 20-year period, Oyedele said the government was paying the amounts contained in the verified records.
He acknowledged that inflation had significantly reduced the purchasing power of the money over the years.
However, he explained that the settlement did not provide for an inflation-related adjustment.
The Nigeria Airways payment is part of the Federal Government’s wider effort to settle verified inherited obligations, including outstanding commitments to pensioners and indigenous contractors.
