The Federal Government has released N18 billion in outstanding severance benefits to 2,100 former employees of the defunct Nigeria Airways, more than two decades after the national carrier was liquidated.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this while speaking on the implementation of President Bola Tinubu’s directive to settle inherited liabilities owed to former workers and contractors.
Oyedele said 2,100 former Nigeria Airways workers covered by batches one to seven had received their payments, while another 600 beneficiaries in batches eight and nine were being finalised for payment within the next few days.
The minister said the settlement was not merely about releasing funds but also about restoring dignity and trust in government, stressing that citizens with legitimate claims should not have to wait indefinitely before receiving what they were owed.
He said the payment represented the government’s responsibility to honour legitimate obligations to its citizens rather than an act of favour.
Oyedele apologised to the former workers for the prolonged delay and thanked them for their patience, saying the administration was determined to confront inherited liabilities instead of allowing them to remain unresolved.
The former Nigeria Airways workers had waited for more than 20 years for their outstanding severance benefits following the liquidation of the airline. Some beneficiaries died during the period, leaving their families to pursue the entitlements.
Oyedele said cases involving deceased beneficiaries would be processed through their next of kin, beneficiaries or estates, depending on the documentation available to the government.
He explained that such cases could require additional legal procedures but assured affected families that the government would support efforts to ensure they receive the money owed to their deceased relatives.
The minister said the payment process took longer than expected because of extensive verification aimed at establishing genuine claims and preventing fraudulent or duplicate payments.
According to him, the verification involved biometric capture, validation of personnel records, confirmation of banking details and examination of beneficiary documentation.
Oyedele said the government eventually decided to pay beneficiaries whose claims had been successfully validated instead of waiting for the verification of the entire list to be completed.
He also dismissed concerns that junior workers were being discriminated against in favour of senior former employees, explaining that payments were based on successfully verified claims and supporting documentation.
On concerns about the effect of inflation on benefits that had remained unpaid for more than two decades, Oyedele acknowledged that the purchasing power of money declines over time.
He said the government’s immediate responsibility was to settle the amounts established by its records and verified documentation, while any additional adjustment or compensation for inflation would require a separate government decision.
The minister also disclosed that the Federal Government had changed its approach to settling outstanding debts owed to contractors, with priority initially given to smaller contractors whose businesses depend more directly on government payments.
He said the first phase targeted contractors owed N50 million or less, covering more than 2,000 contractors, while the second phase increased the threshold to N100 million and below, covering about 5,000 contractors.
According to him, contractors with much larger claims could be handled through negotiated arrangements, including the use of promissory notes where appropriate.
Oyedele said the approach was necessary because while a promissory note could form part of the settlement of a large claim, it would not provide the immediate cash required by a small contractor to pay workers and keep the business running.
He said the government also wanted verified government debts to become sufficiently credible and bankable, enabling contractors to have greater confidence in using government commitments to access financing.
The minister stressed that contractors should not need political connections or personal relationships with government officials before receiving payment for properly executed contracts.
He further warned contractors against paying commissions or illegal charges to officials or intermediaries to facilitate payment, urging anyone asked to pay such charges to report the matter to the government.
Oyedele said the administration was also taking steps to prevent the accumulation of fresh contractor debts by ensuring that ministries, departments and agencies do not enter into capital expenditure commitments without clarity on the funding required to execute them.
He said the government was working towards ensuring that future capital commitments were matched with available or identifiable funding sources to reduce the accumulation of unpaid obligations.
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