By TheDailyNewsHub
The Federal Government has commenced the payment of ₦18 billion in outstanding severance benefits to 2,700 former workers of the defunct Nigeria Airways Limited, more than two decades after the national carrier was liquidated.
The Federal Ministry of Finance announced the development on Friday, saying payments to 2,100 beneficiaries in Batches 1 to 7 had been completed, while the entitlements of another 600 former workers in Batches 8 and 9 were being finalised for payment in the coming days.
The settlement follows President Bola Tinubu’s directive approving the payment of outstanding severance obligations owed to former Nigeria Airways employees.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the government’s action was aimed at addressing legitimate obligations that had remained unresolved for years.
“Behind these figures are people and families who have waited for years to receive what is legitimately due to them,” Oyedele said, stressing that the government’s responsibility was to resolve outstanding obligations once the necessary processes and resources were in place.
The minister acknowledged the lengthy delay in settling the former workers’ entitlements, with some beneficiaries having grown old while waiting and others dying before receiving their benefits.
The payment process involved extensive verification, including biometric capture and validation of beneficiaries’ personal and banking information. The Finance Ministry said the measures were necessary to ensure that payments reached legitimate beneficiaries and to safeguard public funds.
The government is also preparing a second-phase mop-up exercise for eligible former Nigeria Airways workers whose records could not be processed during the initial exercise.
According to the Director of the Presidential Initiative and Continuous Audit (PICA) Department, Seldam Dangin, the mop-up exercise will address inaccurate or outdated personal information, additional biometric verification and changes to banking details.
Cases involving deceased beneficiaries will also be considered, with next of kin or estates required to complete the necessary legal and verification procedures before payments can be made.
The mop-up exercise is expected to commence by the end of September or early October 2026, subject to the completion of final arrangements.
Oyedele said the government had prioritised verified beneficiaries rather than waiting for the entire process to be completed before releasing funds, allowing those whose claims had been cleared to receive their entitlements.
The Federal Ministry of Finance also acknowledged the role of Aviation and Aerospace Development Minister Festus Keyamo in sustaining efforts to resolve the matter, as well as the National Assembly Joint Committees on Aviation.
The ministry specifically commended the Senate Committee on Aviation, chaired by Senator Abdulfatai Buhari, and the House Committee on Aviation, chaired by Hon. Abdullahi Idris Garba, for their oversight and engagement on the issue.
Nigeria Airways was the country’s national flag carrier before its liquidation in 2003. The failure to settle the entitlements of its former employees became a longstanding issue involving successive administrations.
The latest payment represents a significant step towards resolving the outstanding severance obligations, although the planned mop-up exercise indicates that some eligible former workers and their families are still awaiting settlement.
The Federal Government said the exercise would continue until outstanding legitimate cases are addressed.