The Federal Government has commenced the payment of about ₦18 billion in outstanding severance benefits to 2,700 former workers of Nigeria Airways Limited, more than two decades after the national carrier was liquidated.
The development marks a major step towards resolving one of the longstanding financial obligations arising from the collapse of the former national airline.
The government has completed payments to 2,100 beneficiaries covered under Batches 1 to 7, while the processing of Batches 8 and 9, comprising another 600 beneficiaries, is being finalised.
The affected workers are expected to receive their payments within days, bringing the total number of former Nigeria Airways employees covered under the nine batches to 2,700.
For the beneficiaries and their families, the payments represent long-awaited relief after years of uncertainty over entitlements that had remained outstanding since the liquidation of the airline.
President Bola Ahmed Tinubu had earlier approved the settlement of the outstanding severance obligations and directed that the matter be brought to a conclusion.
Following the presidential directive, the Ministry of Finance undertook the processes required to identify eligible beneficiaries, validate records and determine the financial obligations involved.
Under the direction of the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the process culminated in the commencement of payments to the first seven batches, while arrangements for Batches 8 and 9 have reached the final stage.
Speaking on the development, Oyedele said the payment reflected the Federal Government’s commitment to addressing legitimate outstanding obligations and prioritising the welfare of citizens.
“Behind these figures are people and families who have waited for years to receive what is legitimately due to them. 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,” he said.
The minister said the exercise demonstrated what could be achieved when government institutions worked together to resolve longstanding obligations.
He added that the government would ensure that legitimate beneficiaries received their approved entitlements while maintaining the necessary safeguards to protect public funds.
The Federal Ministry of Finance also acknowledged the role of the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, whose engagement with the Finance Ministry helped sustain efforts to resolve the matter.
The National Assembly Joint Committees on Aviation were also commended for their oversight and engagement on the outstanding benefits.
The Chairman of the Senate Committee on Aviation, Senator Abdulfatai Buhari, and his counterpart in the House of Representatives, Hon. Abdullahi Idris Garba, were said to have remained actively engaged in advancing the case of the former Nigeria Airways workers and supporting efforts towards a settlement.
The payment process involved extensive verification of beneficiary records, including biometric capture and validation of personal and banking information, to ensure that public funds were released only to duly verified beneficiaries.
The Director in charge of the Presidential Initiative and Continuous Audit (PICA) Department, Seldam Dangin, said the Ministry was preparing a second phase of the exercise to accommodate beneficiaries whose records could not be processed during the initial phase.
According to him, the planned mop-up exercise would address cases involving inaccurate or outdated information, additional biometric verification and corrections to banking details.
It would also cover deceased beneficiaries, with their next of kin or estates required to complete the necessary verification and legal procedures before payments could be made.
Dangin said the mop-up exercise was expected to commence by the end of September or early October, subject to the completion of final arrangements.
Nigeria Airways, established in 1958 as the country’s national carrier, eventually ceased operations and was liquidated in 2003.
The airline’s collapse left former employees with unresolved claims, including severance-related obligations, which became a recurring issue for successive administrations.
With payments completed for the first seven batches and Batches 8 and 9 nearing completion, the Federal Government’s latest intervention is expected to substantially reduce the backlog of severance claims.
The planned mop-up exercise will further provide an opportunity for eligible former workers, as well as the estates of deceased beneficiaries, to complete the verification process and access their approved entitlements.