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The Federal Government has paid N18 billion in outstanding severance benefits to 2,700 former employees of the defunct Nigeria Airways, more than two decades after the airline was liquidated.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this while speaking on the implementation of President Bola Tinubu’s directive to settle inherited liabilities owed to former workers and contractors.
Edun said 2,100 former Nigeria Airways workers in batches one to seven had already received their payments, while another 600 beneficiaries in batches eight and nine had been finalised for payment within the next few days.
The minister said the settlement was not merely about releasing funds but about restoring dignity and trust in government, stressing that citizens who had legitimate claims should not have to wait indefinitely before receiving what was due to them.
“This is ultimately not favour from government. This is your entitlement. Government must be trusted not only for the promises that it makes, but also for its responsibility to meet legitimate obligations owed to its citizens,” he said.
Edun apologised to the former workers for the prolonged delay and thanked them for their patience, noting that the administration was determined to confront inherited liabilities rather than allow them to remain unresolved for another generation.
The former Nigeria Airways workers had waited for more than 20 years to receive their severance benefits following the liquidation of the national carrier, with some of the beneficiaries dying during the period and leaving their families to pursue the outstanding entitlements.
Edun said cases involving deceased beneficiaries would be processed through their next of kin, beneficiaries or estates, depending on the documentation available to government. He explained that such cases could require additional legal procedures, assuring that government would support affected families to enable them to collect the money owed to their deceased relatives as quickly as possible.
The minister said the payment process had taken longer than expected because of the extensive verification required to establish genuine claims and prevent fraudulent or duplicate payments.
According to him, the verification exercise involved biometric capture, validation of personnel records, confirmation of banking information and examination of beneficiary documentation. He said government had initially intended to make the payments about a month earlier but decided not to compromise the verification process.
Edun, however, said the government eventually opted to pay beneficiaries whose claims had already been successfully validated instead of waiting until verification of the entire list was completed.
He also dismissed any suggestion that junior workers were being discriminated against in favour of senior former employees, saying payments were based on successfully verified claims and supporting documentation.
Responding to concerns about the effect of inflation on benefits that had remained unpaid for more than two decades, Edun acknowledged that the purchasing power of money declines over time.
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He said, however, that 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 noted that government had, in some instances, adjusted pension obligations because keeping old pension amounts unchanged amid rising costs could leave retirees unable to meet basic needs.
Edun 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.
He said contractors with much larger claims, including those owed N2 billion or N3 billion, could be handled through negotiated arrangements, including the use of promissory notes where appropriate.
Edun 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, so that contractors could 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 they could receive payment for properly executed contracts.
“Your business is to do your work. It’s our business to ensure that you are paid,” he said.
Edun further warned contractors against paying commissions or illegal charges to officials or intermediaries in order to facilitate payment, while urging anyone asked to pay such charges to report the matter to government, noting that the administration would act on credible information.
The minister 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 government was working towards ensuring that future capital commitments were matched with available or identifiable funding sources, thereby reducing the accumulation of unpaid obligations.
