FG Pays N18bn To Defunct Nigeria Airways Staff

The Federal Government has paid the sum of N 18 billion to former staff of the defunct Nigeria Airways.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this at a press briefing in Abuja on Friday.

He disclosed that more former staff claims were being verified and that the government would ensure that the entitlements of the former staff were fully paid.

Mr. Oyedele said the payments were made possible by President Bola Tinubu, who gave the approval to settle the entitlements after more than twenty years.

Oyedele’s words, “Today, I’m pleased to inform you that following the directive of Mr. President, President Bola Tinubu, has now paid 2,100 former Nigeria Airways workers in batches one to seven, while another 600 beneficiaries in batches eight and nine are being finalised for payment within the next few days.

“Altogether, this represents 18 billion naira in benefits for 2,700 former workers.

“Recognise that no payment today can fully compensate for more than two decades of waiting, but it is important that government confronts these long-standing obligations rather than allowing them to remain unresolved for another generation.”

The minister described the intervention as part of a broader effort by the current administration to address legitimate inherited obligations and put people at the centre of public finance.

He said, “Our message to Nigerians is simple: government must be trusted not only for the promises it makes, but also for the obligations it honours.

“As we strengthen Nigeria’s public finances, improve revenues, and create greater fiscal space, we will continue to prioritise legitimate obligations that directly affect the welfare of Nigerians while maintaining transparency and fiscal discipline. For the former workers of Nigeria Airways to have waited so long, this is ultimately not favour from government.

“For more than two decades, following the liquidation of Nigeria Airways, many former employees have waited for the outstanding severance benefits.

“It’s about people, dignity, trust, and the responsibility of government to honor legitimate obligations to its citizens.”

The minister apologised on behalf of the federal government for the delay in the payment of the entitlements, saying, “It is your entitlement. We apologise for the long delay and thank you for your patience.”

He also disclosed that 12, 000 local contractors have been paid in a move to give greater credibility to the government’s contractual agreements by meeting its obligations

Speaking further on government efforts to settle contractors’ debts, the minister said, “I don’t think there’s any country where they have enough resources. So when we say we don’t have enough common states, normal thing. You go to America; they are borrowing.

“I don’t think there’s any country where they have enough resources. So, when we say we don’t have enough, it’s a normal thing. You go to America, they are borrowing. You go to Japan, it’s more than 200% of their GDP. You go to the UK. So, I think it’s the reality of life that our needs are limited, but our resources are limited.

“So, what Mr. President has directed that we do is to change our priorities. And so, we decided that, you know, we are owing contractors a lot of money. Instead of paying the big contractors billions of Naira, why don’t we prioritise the small contractors? So, we started by paying contractors that we owe 50 million Naira or less.

“In one payment, we covered more than 2,000. And then we moved on. In the second payment, we moved that amount to 100 million and below. And we covered over 1,000 as well. It doesn’t mean that if we are owing you a lot of money, we will not pay.

“It just means that your own process can be different. We can call people that we are owing N2 billion, N3 billion to come and sit down, negotiate and give them promissory notes. You can’t give promissory notes to someone who wants to collect 10 million to go and pay salaries of the two or three staff and pay school fees of the kids and buy food.

“That is the approach we have adopted. And the feedback has been very positive because people now see that government thinks about the average Nigerian and we care about our people. As we are able to mobilize more resources, our expectation in the short to medium term is that we get to a point where when government says, I’m owing you and I’ll pay you, you can take it to the bank.

No Kickback

“Literally, we want to be very credible. And once you’ve done your own part, you’ve done your work, valuation has been done, it’s been validated, you don’t need to know the finance minister. You don’t need to know who is the accountant at the federation. That’s your business. Your business is to do your work.

“It’s our business to ensure that you are paid. And nobody should ask you for any commission. If anybody is asking you for commission and you’re paying, it’s your fault. Because I can tell you where I sit. If I have that information, we act on it immediately. We will not ask you to make any payments. That is illegal. That is criminal. You should also not offer it.

“Do your own part. We’ll do our own part. And going forward, we will do our best to ensure that the accumulated obligations of the past do not repeat themselves.”