FG pays ₦18bn severance benefits to 2,700 Ex-Nigeria Airways workers

By Onu Okorie

Federal Government has concluded the payment of outstanding severance benefits to 2,100 former workers of the liquidated Nigeria Airways Limited, bringing the total number of beneficiaries covered by the exercise to 2,700.
The payments, which amount to about ₦18 billion across nine batches, are aimed at resolving a decades-old obligation owed to former employees of the defunct national carrier.
The Federal Ministry of Finance said yesterday that beneficiaries in Batches 8 and 9, numbering about 600, were being finalised and would receive their payments within days.
The development is expected to bring relief to thousands of former workers and their families who have waited for more than two decades for their entitlements following the liquidation of Nigeria Airways.
The payment of Batches 1 to 7 represents severance benefits due to eligible former employees, while the finalisation of Batches 8 and 9 is expected to substantially close the outstanding obligation.
President Bola Ahmed Tinubu had earlier approved the settlement of the severance obligations and directed that the longstanding matter be brought to a conclusion.
His intervention provided the impetus for the Federal Government to commence the process of resolving the claims, following years of uncertainty among former workers over when, or whether, their outstanding benefits would be paid.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the exercise reflected the administration’s commitment to addressing legitimate government obligations and prioritising the welfare of Nigerians.
Oyedele said: “Behind these figures are people and families who have waited for years to receive what is legitimately due to them. Our responsibility is to confront outstanding obligations, complete the necessary processes and, once the resources are secured, ensure that the people affected feel the impact of government positively.”
According to the minister, the exercise also demonstrates the importance of inter-agency collaboration in resolving longstanding public-sector obligations.
He stressed that while government was committed to ensuring that legitimate beneficiaries received their approved entitlements, appropriate safeguards must be maintained to protect public funds.
The Ministry said the process involved extensive verification of beneficiary records, including biometric capture and validation of personal and banking information, to ensure that payments were made only to rightful beneficiaries.
The ministry also acknowledged the contribution of the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, whose engagement with the Finance Ministry helped sustain efforts towards resolving the claims.
The National Assembly’s Joint Committees on Aviation were also credited with playing a significant oversight role in advancing the settlement.
The Chairman of the Senate Committee on Aviation, Senator Abdulfatai Buhari, and his House counterpart, Hon. Abdullahi Idris Garba, were said to have remained actively engaged in the matter.
Meanwhile, the government has announced plans for a second-phase mop-up exercise to capture eligible beneficiaries whose records could not be processed during the first phase.
The Director in charge of the Presidential Initiative and Continuous Audit (PICA) Department, Seldam Dangin, said the mop-up would address cases involving inaccurate or outdated information, additional biometric verification and corrections to banking details.
It would also cover deceased beneficiaries, with their next of kin or estates required to complete the necessary verification and legal processes before payments could be made.
Dangin said the mop-up exercise was expected to commence by the end of September or early October, subject to the conclusion of final arrangements.
The Federal Government’s latest payment represents one of the more significant attempts to settle the financial liabilities arising from the liquidation of Nigeria Airways, which ceased operations in 2003.
With Batches 8 and 9 set for payment and a further mop-up planned, the government hopes to resolve remaining legitimate claims and bring an end to one of the country’s longest-running post-liquidation employee obligations.