By Isaac Mission
The Federal Government has commenced the payment of N18 billion in outstanding severance benefits owed to 2,700 former employees of the defunct Nigeria Airways.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while speaking with journalists in Abuja on Friday.
Oyedele said 2,100 former workers had already received their entitlements, while another 600 beneficiaries from batches eight and nine had been approved for payment.
He explained that the payments were being released in phases to ensure that individuals who had completed the verification process did not have to wait for unresolved claims involving other beneficiaries.
The minister said the beneficiaries cut across various categories of workers, with no distinction between junior and senior employees.
He added that former employees who died before receiving their payments would not lose their entitlements, as their documented next of kin or other legally recognised beneficiaries would receive the funds after completing the necessary legal procedures.
Many former Nigeria Airways workers have waited for more than 20 years for their severance benefits following the liquidation of the airline in 2005.
Oyedele acknowledged the hardship caused by the prolonged delay, noting that some beneficiaries had grown old while waiting, while others died before their claims could be settled.
He said the payment followed President Bola Tinubu’s directive to resolve the long-standing obligation.
According to the minister, the government recognised that the payment could not fully make up for the decades beneficiaries had spent waiting, but considered it necessary to settle inherited liabilities rather than pass them on to another generation.
Oyedele also apologised to the former workers, stressing that the money being paid represented legitimate entitlements and should not be regarded as a government favour.
Verification Conducted Before Payment
The minister said the payment process was preceded by extensive verification exercises, including biometric registration and the confirmation of beneficiaries’ personal and banking details.
He explained that further checks would be carried out where necessary, particularly in cases involving outdated records, incorrect bank information and beneficiaries who had died.
Responding to questions about the impact of inflation on the value of the benefits, Oyedele said the government was paying the amounts contained in the verified records. He acknowledged that inflation had significantly reduced the value of money over the past two decades but said there was no provision for inflationary adjustments in the settlement.
FG Settles Contractor Debts
Oyedele also disclosed that the Federal Government had paid outstanding debts owed to more than 12,000 indigenous contractors.
He said the government initially focused on contractors with verified claims of N50 million or less before extending attention to those owed up to N100 million.
According to him, larger claims running into billions of naira could be handled separately through negotiations and instruments such as promissory notes.
The approach, he explained, was intended to assist smaller businesses that needed the funds to pay workers and meet other immediate financial obligations.
The minister warned contractors against giving commissions or inducements to government officials in exchange for the release of verified payments, describing such demands as unlawful.
He added that the government was also working to prevent a fresh accumulation of unpaid obligations by improving budget realism and ensuring that capital projects have identifiable funding sources.