Nigeria Federal Government settles ₦18bn debt to ex-Nigeria Airways workers

The Nigerian Federal Government has initiated two major disbursement programs to settle outstanding financial obligations.

First, the government has begun paying ₦18 billion in severance benefits to 2,700 former employees of the defunct Nigeria Airways. Minister of Finance Taiwo Oyedele announced that 2,100 beneficiaries across seven batches have already received payments, while the remaining 600 are being finalized. This settlement follows a directive from President Bola Tinubu to resolve debts owed more than two decades after the airline's liquidation. The process involves biometric verification to ensure funds reach legitimate claimants and their next of kin.

Second, the National Pension Commission (PenCom) has commenced the Federal Government Exit Benefit Scheme (EBS). Approximately ₦1.1 billion has been disbursed to 175 retirees from treasury-funded Ministries, Departments, and Agencies who exited the service between January and August 2026. Under this scheme, civil servants with at least 10 years of service are entitled to an exit benefit equal to 100 per cent of their total annual emolument. The 2026 Appropriation Act allocated ₦32.9 billion for this scheme, with ₦12.3 billion already released to a dedicated account at the Central Bank of Nigeria.