The Federal Government has paid N18 billion in outstanding entitlements to 2,100 former workers of the defunct Nigeria Airways, more than two decades after the national carrier was liquidated.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this on Friday at a press briefing in Abuja, saying another 600 former workers were being finalised for payment.

Oyedele said the payments, covering beneficiaries in batches one to seven, represented a major step towards resolving long-standing obligations inherited by the government following the collapse of Nigeria Airways.

He said the additional 600 beneficiaries in batches eight and nine would receive their payments within the next few days, bringing the total number of former workers covered to 2,700 and the value of the benefits to N18 billion.

“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,” Oyedele said.

“Altogether, this represents N18 billion in benefits for 2,700 former workers.”

The minister acknowledged that the payment could not fully compensate the former workers for the more than 20-year delay, but said the government had chosen to confront inherited obligations rather than allow them to remain unresolved.

According to him, the intervention reflects the administration’s commitment to putting citizens at the centre of public finance and restoring confidence in government’s ability to honour legitimate obligations.

Oyedele apologised to the former workers for the prolonged delay, stressing that the payments were their legitimate entitlements and not a favour from government.

“It is your entitlement. We apologise for the long delay and thank you for your patience,” he said.

The minister also disclosed that the government had paid 12,000 local contractors as part of efforts to rebuild confidence in its contractual commitments.

He explained that the administration had adopted a payment strategy that initially prioritised smaller contractors owed N50 million or less, before extending the threshold to contractors owed up to N100 million.

Oyedele said more than 2,000 contractors were covered in the first round, while over 1,000 others benefited from the second round.

He explained that the approach was designed to provide immediate relief to smaller businesses that depend heavily on government payments to meet salaries and other basic obligations.

The minister said larger contractors with outstanding claims running into billions of naira would also be addressed through negotiated arrangements, including the possible issuance of promissory notes.

Oyedele further warned against the payment or demand for kickbacks in the settlement of government debts, insisting that contractors who had completed their work and passed the required valuation and verification processes should not need personal connections to receive payment.

“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,” he said.

He urged contractors not to offer commissions to officials and warned anyone demanding such payments that the practice was illegal and criminal.

According to him, the government’s objective is to establish a system in which legitimate contractors can trust government commitments and receive payment without having to cultivate personal relationships with officials.

“As we are able to mobilise 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,” Oyedele said.

Nigeria Airways, once the country’s national carrier, ceased operations in 2003 after years of financial and operational difficulties. Its liquidation left former employees waiting for their outstanding entitlements for more than two decades.