FG Begins Payment of N18bn Severance Benefits to 2,700 Defunct Nigeria Airways Workers
Ndubuisi Francis in Abuja The Federal Government has announced the commencement of payment of N18 billion, being outstanding severance benefits to 2,700 ex-workers of the defunct national air carrier, Nigeria
The Federal Government has begun disbursing N18 billion in outstanding severance benefits to 2,700 former employees of the defunct national airline, Nigeria Airways. This liquidation occurred in 2005, despite the International Finance Corporation's recommendation for a privatization option. Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed that 2,100 beneficiaries had already received their payments, with another 600 in batches eight and nine awaiting their share.
These benefits encompassed various categories of former Nigeria Airways personnel, regardless of their seniority. The minister also assured that payments would be made to the next of kin or other beneficiaries of deceased workers after necessary legal procedures. Oyedele attributed the payment to President Bola Ahmed Tinubu's directive to settle long-standing obligations.
He acknowledged that, although the compensation couldn't fully rectify the two-decade waiting period, it was crucial to resolve inherited liabilities. The minister apologized for the extended delay, explaining that payments were due entitlements rather than governmental favors. The settlement involved thorough verification processes, such as biometric data and validation of personal and banking information, to thwart fraudulent claims.
Oyedele noted that the government's efforts aimed to clear such inherited obligations, including those owed to pensioners and indigenous contractors. Despite inflation significantly reducing the monetary value over the years, the government opted not to adjust the payments accordingly. Additionally, the ministry paid over 12,000 indigenous contractors their outstanding obligations, prioritizing smaller contractors with claims of N50 million or less before moving on to larger claims.
The government warned against any attempts to pay commissions or induce officials to expedite the payment of verified claims, deeming such actions illegal.
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