More than 20 years after Nigeria Airways was liquidated, the Federal Government has begun settling N18bn owed to 2,700 former employees of the airline.
The payment was disclosed on Friday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, during a press briefing in Abuja.
According to Oyedele, 2,100 beneficiaries covered by the first seven batches have already received their entitlements, while 600 others listed in batches eight and nine have been approved for payment.
“Altogether, this represents N18bn in benefits for 2,700 former workers,” he said.
The minister said the delay had lasted so long that some of the former workers died before their entitlements were paid, leaving their relatives to continue the process of recovering the money.
“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 said the payment was being implemented following President Bola Tinubu’s directive to settle the government’s outstanding obligations.
Oyedele acknowledged that the payment could not erase the hardship caused by the lengthy delay but said the government had decided to deal with the inherited liabilities instead of allowing 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.
The minister explained that beneficiaries had undergone verification exercises, including biometric registration and checks of their personal and banking information, to ensure that only legitimate claimants were paid.
He said additional verification would be conducted for cases involving incorrect bank details, outdated information and beneficiaries who had died, with their next of kin or estates required to meet the relevant legal conditions.
Oyedele also addressed concerns over the impact of inflation on the money owed to the former workers. He said the government was paying according to the amounts contained in the verified records and that no inflation adjustment was provided for in the settlement.
He added that the decision to pay in batches was aimed at ensuring that workers whose claims had already been verified did not suffer further delays while other cases were being resolved.
The minister said the payments covered former Nigeria Airways employees across different levels, adding that the government did not discriminate between junior and senior staff.
For workers who died before receiving their benefits, he said payment would go to their recognised next of kin or other eligible beneficiaries after completion of the required legal processes.
Oyedele further revealed that the government had also settled outstanding debts owed to more than 12,000 indigenous contractors.
He said smaller contractors with claims of up to N50m were initially prioritised, while verified claims of up to N100m were subsequently included.
Larger debts running into billions of naira, he explained, could be handled through separate arrangements, including negotiations and promissory notes.
The minister said the approach was intended to assist smaller businesses that needed the funds to pay workers and handle pressing financial commitments.
He also warned contractors not to offer money or commissions to officials in exchange for facilitating payment, describing such demands as illegal.
On preventing similar debt accumulation in the future, Oyedele said the government was working towards more realistic budgeting and ensuring that funding was identified before capital commitments were made.
He said, “We will do our best to ensure that the accumulated obligations of the past do not repeat themselves.”
Oyedele apologised to the former Nigeria Airways workers for the prolonged wait, stressing that the money being released was their entitlement and not a favour from the government.
