More than two decades after the liquidation of Nigeria Airways, the Federal Government has started settling outstanding severance benefits owed to former employees of the defunct national airline.
The government is committing N18 billion to 2,700 former workers, according to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Speaking in Abuja on Friday, Oyedele said payments had already been made to 2,100 beneficiaries covering batches one through seven.
He added that another 600 former workers in batches eight and nine had been cleared for payment.
The minister said the total amount represents N18 billion in benefits owed to the affected workers.
Some Beneficiaries Did Not Live to Receive Payment
Oyedele highlighted the human impact of the prolonged delay, noting that many former workers had waited for their entitlements for more than 20 years.
Some beneficiaries, he said, had become elderly during the period, while others died before the government could settle their claims.
He said President Bola Ahmed Tinubu directed the government to address the inherited obligation.
According to the minister, the government recognised that no payment could fully make up for such a lengthy delay. However, he said settling the verified claims was preferable to allowing the issue to remain unresolved.
Government Carries Out Verification
Before making the payments, the authorities conducted a verification process aimed at identifying genuine beneficiaries and preventing fraudulent claims.
The exercise included biometric capture and checks of personal details and bank account information.
Oyedele said some cases still require further attention.
For example, beneficiaries with outdated records or incorrect bank details may need to provide updated information. Where a beneficiary has died, the relevant next of kin or estate representatives will have to complete the required procedures.
Government Says No Inflation Compensation
The Finance Minister was also asked whether the outstanding benefits had been recalculated to reflect the effects of inflation over the past two decades.
He said the government was settling the obligations according to the amounts contained in the documented and verified claims.
While acknowledging that inflation had greatly reduced the value of the money over the years, Oyedele said there was no provision for an inflation adjustment under the settlement.
The payment programme forms part of the Federal Government’s broader initiative to clear verified inherited financial obligations, including outstanding commitments involving pensioners and local contractors.
