The Federal Government has cleared N18 billion in outstanding severance benefits owed to 2,700 former workers of Nigeria Airways Limited, more than two decades after the national carrier was liquidated.
The Federal Ministry of Finance disclosed that payments had been completed for 2,100 beneficiaries covered under Batches 1 to 7, while payments to another 600 beneficiaries in Batches 8 and 9 are being finalised.
The development follows President Bola Ahmed Tinubu’s approval of the settlement of outstanding severance obligations owed to the former workers.
The President had directed the Federal Government to bring the longstanding matter to a conclusion and provide relief to the affected beneficiaries.
Under the direction of the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the Ministry undertook processes to identify eligible beneficiaries, validate records and establish the financial obligations before commencing payments.
Oyedele said the payment reflected the government’s determination to address legitimate outstanding obligations and prioritise the welfare of Nigerians.
“Behind these figures are people and families who have waited for years to receive what is legitimately due to them,” he said.
“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,” the minister added.
Oyedele said the exercise demonstrated what could be achieved when government institutions worked together to resolve longstanding issues, while ensuring that legitimate beneficiaries receive their approved entitlements and public funds remain protected.
The Ministry also acknowledged the role of the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, whose engagement with the Finance Ministry helped sustain the matter and advance efforts towards its resolution.
The National Assembly Joint Committees on Aviation also played a role through their oversight and engagement on the outstanding benefits.
The Chairman of the Senate Committee on Aviation, Senator Abdulfatai Buhari, and Chairman of the House Committee on Aviation, Hon. Abdullahi Idris Garba, were actively involved in advancing the case of the former Nigeria Airways workers.
The payment process involved extensive verification of beneficiary records, including biometric capture and validation of personal and banking information, to ensure that funds were paid to rightful beneficiaries.
According to the Director in charge of the Presidential Initiative and Continuous Audit (PICA) Department, Seldam Dangin, the Ministry is preparing a second-phase mop-up exercise for beneficiaries whose records could not be processed during the first phase.
Dangin said the exercise would focus on updating inaccurate or outdated information, additional biometric verification where necessary and correcting banking details.
He added that cases involving deceased beneficiaries would also be addressed, with next of kin or estates required to complete the necessary verification and legal processes before payment.
The mop-up exercise is expected to commence by the end of September or early October, subject to final arrangements.
The Ministry said the payment to the first seven batches, alongside the readiness of Batches 8 and 9, represents a major step towards resolving the longstanding severance obligation to former Nigeria Airways workers.