By Benson Daniel
The Federal Government has paid N18 billion in outstanding severance benefits to 2,700 former employees of the defunct Nigeria Airways, bringing progress to a long-running obligation that has remained unresolved for more than two decades.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed the development during a briefing in Abuja, saying 2,100 former workers covered by batches one to seven had already received their payments.
Another 600 beneficiaries under batches eight and nine have been cleared, with their payments being finalised. Once completed, the exercise will cover 2,700 former Nigeria Airways workers with total benefits of N18 billion.
The payment follows a directive from President Bola Tinubu to resolve the outstanding severance obligations owed to former workers of the national carrier, which was liquidated more than 20 years ago.
For many of the affected workers, the settlement comes after years of uncertainty. Some beneficiaries have grown old while waiting for their entitlements, while others died before receiving the money, leaving their families to pursue the claims.
Oyedele said the government recognised the lengthy delay but considered it necessary to confront inherited obligations rather than allow them to remain unresolved.
The payment process involved extensive verification of beneficiaries, including biometric capture and validation of personal and banking information. The measures were introduced to prevent fraudulent claims and ensure that public funds reach genuine beneficiaries.
The government is also preparing to address cases involving outdated records, incorrect bank details and deceased beneficiaries. In such cases, next of kin, beneficiaries or estates will be required to complete the necessary legal and verification procedures before payments can be released.
The government has explained that payments are being made in batches because officials chose to release funds to beneficiaries whose records had already been fully verified rather than delay the entire exercise until every outstanding case was resolved.
The minister also acknowledged that inflation had significantly reduced the value of the benefits over the more than two decades since the obligations arose. However, the government is settling the claims based on the documented and verified amounts, with no automatic inflation adjustment included in the current payments.
The Nigeria Airways settlement forms part of a wider effort by the Federal Government to clear inherited financial obligations. The government has also been addressing outstanding payments to pensioners and indigenous contractors with verified claims.
Officials said the approach is intended to restore confidence in government’s ability to honour legitimate obligations while ensuring that payments are protected against fraudulent claims.
For the former Nigeria Airways employees and their families, however, the latest development represents more than a financial transaction. It marks the long-awaited recognition and settlement of entitlements that remained unpaid long after the airline ceased operations.
The government has assured affected beneficiaries that outstanding cases will continue to be reviewed and resolved through further verification exercises.
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