WorldStage— 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, Mr Taiwo Oyedele, who disclosed this said the payment followed a directive by President Bola Tinubu to settle verified obligations owed to the former workers.
Oyedele said 2,100 beneficiaries in batches one to seven had already received their payments, while another 600 beneficiaries in batches eight and nine had been finalised and would be paid within the next few days.
He said the prolonged delay had caused hardship for many of the former workers, with some beneficiaries dying while waiting for their entitlements, leaving their families and next of kin to pursue the outstanding payments.
According to him, the settlement is not a favour from government but the fulfilment of a legitimate obligation to citizens who had earned their benefits.
“This is ultimately not favour from government. This is your entitlement.”
Oyedele apologised to the former workers for the delay, stressing that the administration was determined to address inherited liabilities rather than allow legitimate obligations to remain unresolved for another generation.
He, however, explained that government had deliberately commenced payments before completing verification of all claimants, releasing funds to beneficiaries whose claims had already been validated while verification continues for outstanding cases.
The verification process includes biometric capture, validation of personnel records, confirmation of banking details and examination of supporting beneficiary documentation to guard against fraudulent or duplicate claims.
Oyedele said the government had initially hoped to commence the payment about a month earlier, but extensive verification delayed the exercise.
He said government could not release public funds solely on the basis of claims without establishing that the beneficiaries were genuine former employees and that the amounts being claimed were supported by official records.
On former workers who have died, the Minister said such cases would require processing through their next of kin, beneficiaries or estates, depending on the available documentation and applicable legal procedures.
He assured affected families that government would work to facilitate the process and ensure that legitimate entitlements are paid.
Addressing concerns over the impact of inflation on benefits that had remained unpaid for more than 20 years, Oyedele acknowledged that the purchasing power of money declines over time.
He, however, said government budgets and existing laws do not automatically provide for inflationary adjustments to historical obligations, making the immediate priority the settlement of amounts established through government records and verification.
He noted that any additional compensation for the loss of purchasing power would require a separate policy decision by government, citing pension adjustments as an area where government had, in some instances, intervened to protect retirees from severe erosion of their income.
The Minister also dismissed concerns that junior or senior former Nigeria Airways workers were being treated differently, saying payments were being determined by successful verification of claims and documentation rather than rank or category.
Oyedele also disclosed a change in the Federal Government’s approach to settling outstanding debts owed to contractors, with smaller contractors being prioritised because of their greater dependence on immediate cash flow.
He said contractors owed N50 million or less were targeted in the first phase, covering more than 2,000 contractors.
The government subsequently raised the threshold to N100 million, with about 5,000 contractors covered under the second phase.
He clarified that contractors owed more than N100 million would not be excluded, but that larger obligations could be handled through negotiated settlement arrangements.
According to him, contractors with very large claims, including obligations of N2 billion or N3 billion, may be offered promissory notes or other structured payment arrangements.
He explained that such arrangements were less appropriate for small businesses that needed immediate cash to pay workers, suppliers and meet other operating obligations.
Oyedele said the broader objective was to make verified government debt sufficiently credible and bankable, so that contractors could have confidence in government commitments and potentially use such obligations in their dealings with financial institutions.
He stressed that contractors should not need political connections to receive money legitimately owed to them.
“Your business is to do your work. It’s our business to ensure that you are paid.”
The Minister also warned contractors against paying commissions or illegal charges to officials or intermediaries in exchange for payment.
He urged anyone approached for such payments to report the matter, assuring that the government would investigate and take appropriate action.
Oyedele said the administration’s objective extends beyond clearing inherited arrears to preventing the accumulation of new government debts.
He said ministries, departments and agencies would need to ensure that capital expenditure commitments are backed by available or identifiable funding sources before contracts are awarded.
According to him, government must become more realistic in making financial commitments so that legitimate contractors, pensioners and other beneficiaries are not left waiting for years to receive what they are owed.
He said the Nigeria Airways settlement, contractor payments and efforts to clear pension-related obligations form part of a wider fiscal reform agenda aimed at restoring credibility to government obligations.
Oyedele stressed that government arrears should not be viewed merely as accounting figures, noting that behind every verified pension obligation is a retiree and family, while behind every unpaid contractor certificate are businesses, workers and suppliers.
He said the government would continue to balance the need to honour legitimate obligations with its responsibility to protect public funds through proper verification and documentation.
