ABUJA, Nigeria — Nigeria has paid N18bn ($13.2m) in severance benefits to 2,700 former employees of Nigeria Airways, more than two decades after the state-owned carrier was liquidated, in a move the government said was aimed at clearing long-standing obligations.
Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele said on Friday that 2,100 former workers in batches one to seven had received their payments, while claims involving a further 600 beneficiaries in batches eight and nine were being finalised.
The payments follow a directive from President Bola Tinubu and are part of a broader government effort to settle inherited liabilities while tightening controls over public spending.
“Today is about much more than the payment of money,” Oyedele said at a press briefing in Abuja. “It is about people, dignity, trust, and the responsibility of government to honour legitimate obligations to its citizens.”
Nigeria Airways, once the country’s national carrier, was liquidated in 2003 after years of financial difficulties. Former employees have since faced prolonged delays in receiving severance entitlements.
Oyedele said the government had undertaken extensive verification, including biometric registration and checks of personnel and banking records, before releasing the funds. Cases involving outdated records, incorrect bank details and deceased beneficiaries are still being processed.
The minister said payments would be made only to beneficiaries whose claims had been properly verified, citing the need to protect public funds from fraudulent claims while ensuring legitimate recipients were not excluded.
For deceased workers, benefits will be paid to their next of kin, beneficiaries or estates, subject to the necessary legal procedures.
Oyedele acknowledged that inflation had substantially eroded the value of the benefits over the years, but said any adjustment beyond the documented obligations would require separate consideration.
The Nigeria Airways payments form part of a wider effort by the government to address accumulated public-sector liabilities. Oyedele said authorities were also working through outstanding obligations to pensioners and indigenous contractors.
For contractors, the government has initially prioritised smaller claims, beginning with debts of N50mn or less, followed by obligations of N100mn or less.
The government says the approach is intended to balance the need to honour legitimate commitments with tighter verification and fiscal discipline.
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