FG Nigeria: Disburses Nigeria Airways N18bn Severance Payment

• The Federal Government has commenced payment of N18 billion in severance benefits to 2,700 former Nigeria Airways workers, over two decades after the airline's liquidation.
• Minister of Finance, Taiwo Oyedele, confirmed 2,100 beneficiaries have received payments, with another 600 cleared, following a directive from President Bola Tinubu.
• The payment process involved extensive verification, including biometrics, to prevent fraud, and will address cases of deceased beneficiaries through their next-of-kin or estates.
• No inflation adjustment was made to the benefits, despite acknowledging that inflation has significantly eroded the money's value over time.
• This initiative is part of a wider government effort to clear inherited financial obligations, including payments to over 12,000 indigenous contractors.

The government is committed to confronting these inherited obligations rather than allowing them to persist unresolved for future generations.

The Federal Government of Nigeria has initiated the disbursement of N18 billion in outstanding severance benefits to 2,700 former employees of the defunct Nigeria Airways. This significant payment comes more than two decades after the national carrier's liquidation, marking a crucial step in addressing a protracted financial obligation. The announcement was made by Taiwo Oyedele, the Minister of Finance and Coordinating Minister of the Economy, during a press briefing held in Abuja on Friday.

Minister Oyedele confirmed that 2,100 ex-Nigeria Airways workers, comprising beneficiaries from batches one through seven, have already received their entitlements. An additional 600 individuals, categorized under batches eight and nine, have been cleared and are now slated for payment. This collective sum of N18 billion represents the total benefits allocated for the 2,700 former staff members.

The decision to commence these payments follows a direct instruction from President Bola Tinubu, aimed at resolving the long-standing financial commitment to these former workers. Oyedele highlighted the human toll of the delay, noting that many beneficiaries had aged considerably during the prolonged wait, and tragically, some had passed away, leaving their families to pursue what was legitimately due to them. He acknowledged that while no current payment could fully compensate for over two decades of waiting, the government is committed to confronting these inherited obligations rather than allowing them to persist unresolved for future generations.

The disbursement process for the ex-Nigeria Airways workers benefits involved an extensive verification exercise. This included biometric capture and thorough validation of beneficiaries' personal and banking information, a measure deemed essential to prevent fraudulent claims and ensure that only legitimate recipients received the funds. The government plans further verification steps to address cases involving outdated information, incorrect bank details, or beneficiaries who passed away before receiving their entitlements.

For deceased beneficiaries, the Minister clarified that payments would be directed to their documented next-of-kin or estates, following the completion of all necessary legal procedures. A notable aspect of the settlement is the absence of any inflation adjustment. Despite acknowledging that inflation has substantially eroded the value of the money over the past two decades, Minister Oyedele stated that the government is paying the amounts originally documented and verified, as there was no provision for inflation adjustment within the settlement terms.

Payments are being processed in batches to ensure that verified beneficiaries do not face further delays while other outstanding claims are being processed. This approach aims to expedite relief for those whose information has been successfully validated. The exercise covers all categories of former Nigeria Airways employees, making no distinction between junior and senior staff members.

The Nigeria Airways N18bn severance payment is part of a broader initiative by the Federal Government to clear verified inherited obligations. This commitment extends beyond ex-Nigeria Airways workers benefits to include outstanding payments to pensioners and debts owed to indigenous contractors. Minister Oyedele disclosed that over 12,000 indigenous contractors have also received payments as part of this comprehensive effort.

Initially, the government prioritized smaller contractors with verified claims of N50 million or less, before expanding the scope to include those with claims up to N100 million. For larger claims, potentially running into billions of naira, the government intends to address these separately through negotiations and instruments such as promissory notes. This development signals the Nigerian Federal Government's commitment to resolving long-standing inherited financial obligations, particularly concerning severance and pension benefits, demonstrating a concerted effort to settle historical debts across various sectors.

This development signals the Nigerian Federal Government's commitment to resolving long-standing inherited financial obligations, particularly concerning severance and pension benefits. Lawyers advising clients with similar historical claims against the government, or those handling estate matters for deceased beneficiaries of such claims, should note the government's verification process, the lack of inflation adjustment, and the phased payment approach.

Source: Original reporting via Punch Newspapers