FG pays N4.25bn to 600 more former Nigeria Airways workers

The Federal Government of Nigeria has disbursed 4.25 billion naira in outstanding pension and severance benefits to an additional 600 former employees of the defunct Nigeria Airways Limited. This payment, released on Tuesday, completes the tenth and eleventh batches of the settlement program. Consequently, the total number of beneficiaries who have received funds across eleven distinct batches now stands at 3,300. The Federal Ministry of Finance confirmed the disbursement in a statement issued by its Head of Media, Efe Ovuakporie. The ministry described the transfer as part of broader efforts to clear longstanding financial debts owed to staff of the former national carrier. The initial nine batches of the program covered 2,700 beneficiaries. The recent release extends the settlement process to another 600 eligible individuals. An analysis of the data indicates that the 4.25 billion naira payment represents an average gross benefit of approximately 7.09 million naira per person. However, actual amounts varied based on individual entitlements. The ministry did not specify the cumulative sum paid during the first nine batches in its latest communication, nor did it disclose the remaining liability owed to other former workers. Previous reports indicated that the government began paying 18 billion naira in severance benefits to 2,700 workers in September. Combining these figures, the total reported gross payments for the 3,300 beneficiaries currently stand at approximately 22.25 billion naira. Nigeria Airways operated as the country’s national carrier for decades before ceasing operations in 2003. The airline was formally liquidated in 2004. Its closure left behind unresolved pension and severance obligations, creating a dispute that persisted through multiple administrations. Former employees and their families have demanded payment for years of service. In January 2025, the National Assembly Joint Committee on Aviation stated that the federal government owed former workers 36 billion naira. Lawmakers at the time threatened to withhold approval of the aviation ministry’s budget unless provisions were made to settle these debts. They noted that some former employees had died while awaiting their entitlements, while others faced severe financial hardship. The ministry stated that the latest disbursement aims to provide financial relief to beneficiaries who have waited for the settlement of their rights. It emphasized that the process addresses verified legacy claims to ensure benefits reach eligible former workers and their families. Verification and validation of claims submitted by the next of kin of deceased former employees are currently ongoing. This exercise seeks to establish eligibility and reconcile claims with approved records before authorizing payments. The ministry affirmed that it will continue processing verified claims in accordance with applicable procedures. The airline was established in 1958. Its eventual shutdown marked the end of an era for Nigerian air travel, but the administrative aftermath proved protracted. Successive governments faced pressure from unions and worker associations to honor contractual obligations. The current administration moved forward with the batched payment system to manage the large-scale payout. The statement highlighted that the goal is to resolve verified claims efficiently. While the specific breakdown of the 18 billion naira paid to the first 2,700 workers was detailed in earlier announcements, the focus of the Tuesday statement remained on the new cohort. The ministry reiterated its commitment to clearing the backlog of unpaid benefits. No further dates were provided for subsequent batches beyond the current verification phase. The process involves cross-referencing applicant data against historical employment records. Families of deceased staff members are included in this verification track. The ministry’s media office underscored that only eligible beneficiaries will receive funds once the reconciliation process is complete. The total liability of 36 billion naira cited by lawmakers in early 2025 suggests that significant portions of the debt remain unsettled. The gap between the 22.25 billion naira reportedly paid so far and the 36 billion naira claimed by the legislature indicates that future disbursements are likely required to fully close the account. The government has not specified a timeline for completing the remaining settlements.