By Matthew Otabe, Abuja
The Federal Government has paid N18 billion in outstanding severance benefits to 2,700 former employees of the defunct Nigeria Airways, the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, has disclosed.
Oyedele made the disclosure while briefing journalists in Abuja on Friday on the payment of the long-standing arrears owed former workers of the defunct national carrier.
He said 2,100 beneficiaries in batches one to seven had already received their payments, while another 600 beneficiaries in batches eight and nine had been finalised for payment within the next few days.
The minister said the payment was more than a financial transaction, describing it as an effort by the government to restore dignity, trust and fulfil legitimate obligations to citizens.
“Today is about much more than the payment of money. It’s about people, dignity, trust, and the responsibility of governments to honour legitimate obligations to citizens,” he said.
According to him, former Nigeria Airways employees had waited for more than two decades following the liquidation of the airline, with some dying before receiving their entitlements.
Oyedele acknowledged that no payment could fully compensate beneficiaries for the long delay but said the administration had decided to confront inherited obligations rather than allow them to remain unresolved.
He said the government was applying the same principle to outstanding obligations to pensioners and verified debts owed indigenous contractors, particularly small and medium-sized businesses whose employees and supply chains depend on government payments.
“Behind every verified pension arrear is a retiree and a family. Behind every unpaid contract certificate are Nigerian businesses, employees and supply chains. And behind today’s N18 billion sovereign settlement are 2,700 former Nigeria Airways workers and their families,” he said.
The minister explained that the Nigeria Airways exercise involved extensive verification, including biometric capture and validation of beneficiaries’ personal and banking details.
He said the verification process was necessary to address cases involving outdated information, incorrect bank details and deceased beneficiaries, whose entitlements would require additional legal and administrative procedures.
Oyedele said the government decided to commence payments to beneficiaries whose documentation had been fully verified rather than wait until the entire process was completed.
He added that families of deceased former workers would also be supported to enable them access the benefits due to their deceased relatives, subject to the necessary legal requirements.
On whether the government would adjust the payments to reflect inflation and the decline in the value of money over the more than two decades, Oyedele said the immediate priority was to settle the obligations based on official records.
He noted that existing laws did not provide for inflationary adjustments to the benefits and said any further adjustment would have to be considered separately.
“We believe that the very first and most important step is to meet the obligations as they are based on the records,” he said.
Oyedele also said the administration had adopted a new approach to settling inherited government debts by prioritising smaller contractors.
He explained that contractors owed N50 million or less were initially prioritised, with the threshold subsequently increased to N100 million and below as more resources became available.
The minister said the policy was designed to ensure that limited government resources were spread to businesses that needed the funds most urgently, while larger contractors could be engaged for structured repayment arrangements.
He said the approach was part of efforts to rebuild confidence in government commitments and ensure that contractors who complete their jobs could rely on government to honour its obligations.
Oyedele warned contractors against paying commissions or kickbacks to officials in order to secure payment of legitimate debts.
“If anybody is asking you for any commission and you are paying, it’s your fault. If I have that information, we will act on it immediately. We will not ask you to make any payments,” he said.
He said the government would also work to prevent a recurrence of massive inherited obligations by ensuring that new projects were realistic and that spending commitments were not made without clear funding sources.
Oyedele commended President Bola Tinubu for directing the resolution of the Nigeria Airways arrears, as well as the Minister of Aviation and Aerospace Development, Festus Keyamo, relevant National Assembly committees and officials of the Federal Ministry of Finance for their roles in the process.
He said the government remained committed to prioritising legitimate obligations while maintaining transparency and fiscal discipline.
“For the former workers of Nigeria Airways who have waited so long, this is ultimately not a gift from government. It is your entitlement. We apologise for the long delay and thank you for your patience,” Oyedele said.
