The federal government has paid N18 billion in severance benefits to 2,700 former employees of Nigeria Airways, ending a more than two-decade wait for workers whose entitlements remained outstanding after the airline was liquidated.
Taiwo Oyedele, finance minister and coordinating minister of the economy said Friday that 2,100 former workers covered by batches one through seven have already been paid, while payments to another 600 beneficiaries in batches eight and nine are being finalised and will be completed within days.
‘Today is about much more than the payment of money. It’s about people, dignity, trust, and the responsibility of government to honour legitimate obligations to its citizens,’ Oyedele said at a press briefing in Abuja.
The settlement follows a directive from President Bola Ahmed Tinubu and forms part of the government’s broader effort to clear inherited obligations, including verified pension arrears and debts owed to indigenous contractors, Oyedele said.
Many former Nigeria Airways workers have waited more than 20 years for their severance payments, with some dying before receiving their entitlements and leaving their families to pursue the claims.
Oyedele said the government would not automatically adjust the payments for inflation, despite the significant erosion in the value of money since the obligations arose. The current payments are based on documented and verified entitlements, while any decision to provide additional compensation would have to be considered separately.
‘We’ve discharged the obligations as documented and verified. Any other thing that we need to do has to be discussed separately,’ he said.
The government has subjected claims to an extended verification process, including biometric capture and validation of personal and bank information, in an effort to prevent fraudulent claims. Officials will also conduct further checks to resolve cases involving outdated information, incorrect bank details and beneficiaries who have died.
For deceased workers, Oyedele said payments would be processed in favour of their next of kin or beneficiaries, although such claims require additional legal procedures.
The minister said the government chose to begin paying validated beneficiaries rather than wait until the entire claims list had been processed. That approach allowed the government to release funds to thousands of former workers while continuing verification of outstanding claims.
The Nigeria Airways settlement is part of what Oyedele described as a broader shift in the government’s approach to inherited financial obligations. He said authorities have also prioritised payments to smaller indigenous contractors, beginning with verified debts of N50 million or less and subsequently increasing the threshold to N100 million.
More than 12,000 indigenous contractors have now been paid, Oyedele said.
The government’s strategy is to prioritise smaller contractors whose cash flow may directly affect workers, suppliers and families, while larger claims can be handled through negotiated arrangements, including promissory notes, he said.
‘We want to be very credible. And once you’ve done your own part, you’ve done your work, valuation has been done, it’s been validated, you don’t need to know the finance minister,’ Oyedele said.
The minister also warned contractors against paying commissions to officials to secure government payments, saying such demands are illegal and should be reported.
Oyedele said the administration intends to prevent a repeat of the accumulation of unpaid obligations by making budgets more realistic and ensuring that capital spending commitments are backed by a clear assessment of available funding.
The government’s ability to meet such obligations will depend on stronger revenue collection and the creation of additional fiscal space, he said, while stressing that payments must remain subject to verification and fiscal discipline.
‘For the former workers of Nigeria Airways who have waited so long, this is ultimately not a favour from government. It is your entitlement,’ Oyedele said, apologising for the length of the delay.