FG Begins Payment of N18bn Severance Benefits to Defunct Nigeria Airways Workers After 22 Years

The federal government has begun disbursing N18 billion in outstanding severance benefits to former employees of the now-defunct Nigeria Airways, marking the end of a 22-year wait. The National Pension Commission (PenCom) has also announced the start of additional exit benefits payments to retiring civil servants. Nigeria Airways was liquidated in 2004, contrary to a recommendation for privatization from the IFC.

The Minister of Finance, Taiwo Oyedele, stated that 2,100 employees had already received their payments, while 600 more were cleared for payout in batches eight and nine. The benefits, which cover various categories of former employees, were paid without distinction between junior and senior staff. Oyedele explained that payments were being made in batches to avoid further delays while validating outstanding claims.

For workers who had died before receiving their entitlements, the government pledged to pay their next of kin or other beneficiaries after completing necessary legal processes. The minister attributed the payment to President Bola Ahmed Tinubu's directive to resolve long-standing obligations. He emphasized that while the payment could not fully compensate for the prolonged waiting period, it was necessary to address inherited debts rather than allow them to linger.

The government also paid over 12,000 indigenous contractors who were owed N50 million or less, prioritizing smaller businesses that required immediate funds.