Business
FG settles severance benefits for 2,100 former Nigeria Airways workers after two decades
The Federal Government has paid outstanding severance benefits to 2,100 former workers of the defunct Nigeria Airways, more than two decades after the national carrier was liquidated.
The payment covers beneficiaries in Batches 1 to 7, according to a statement issued by the Federal Ministry of Finance on Friday.
Another 600 former workers in Batches 8 and 9 are being processed for payment and are expected to receive their benefits within days, bringing the total number of beneficiaries under the exercise to 2,700.
The ministry said the benefits across the nine batches amount to N18 billion.
Nigeria Airways, which was established in 1958 as the country’s national carrier, ceased operations in 2003 and was liquidated in 2004. Many former workers subsequently spent years pursuing unpaid terminal and severance benefits.
The latest payment follows years of demands by former workers and interventions by the National Assembly and successive administrations over the outstanding liabilities.
In January 2025, the National Assembly Joint Committee on Aviation said the Federal Government owed former Nigeria Airways workers N36 billion and threatened to withhold approval of the aviation budget unless provisions were made for the payment.
How the payment was made
The Ministry of Finance said President Bola Tinubu had earlier approved the settlement of the outstanding severance obligations and directed that the matter be concluded.
Under the direction of the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the ministry said processes were undertaken to identify eligible beneficiaries, validate records and establish the financial obligations before payments commenced.
Mr Oyedele said the payment was part of the government’s effort to address legitimate outstanding obligations.
“Behind these figures are people and families who have waited for years to receive what is legitimately due to them,” he said.
“Our responsibility is to confront outstanding obligations, complete the necessary processes and, once the resources are secured, ensure that the people affected feel the impact of government positively.”
He said the exercise demonstrated what could be achieved when government institutions worked together to resolve longstanding issues.
READ ALSO: NASS panel threatens to withhold aviation budget until Ex-Nigerian Airways workers are paid
The ministry also acknowledged the involvement of the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, and the National Assembly Joint Committees on Aviation in efforts to resolve the matter.
The ministry said the objective was to ensure that legitimate beneficiaries received their approved entitlements while maintaining safeguards around public funds.
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The Central Bank of Nigeria (CBN) has granted approval-in-principle to JP Morgan to set up a merchant in the country.
The move eases the path for the US largest bank to expand its services – payments, lending, trade finance and corporate banking – in Nigeria, where it has operated a representative office for years.
JP Morgan Merchant Bank Nigeria Limited plans to run wholesale banking, capital markets and advisory services, Michael Akuka, the CBN’s director of corporate communications and investor relations, said in a statement on Friday.
The approval-in-principle is the first phase of the licensing process, and does not translate into an ultimate banking permit.
JP Morgan needs to clear further regulatory hurdles such as incorporation with the Corporate Affairs Commission and operational approvals before it can commence operations, the regulator stated.
The push comes amidst hordes of banking sector reforms in Africa’s most populous country, aimed at bolstering the financial system, enhancing market confidence and boosting resilience.
According to the statement, the CBN also approved the nomination of Adedapo Olagunju as the managing director of the bank and Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.
“Our objective is to build a financial system that is stable, competitive and internationally connected, one that commands confidence and can effectively support investment and economic growth,” said CBN Governor Olayemi Cardoso.
READ ALSO: CBN outlines market infrastructure supporting Nigeria–China financial flows at Beijing investor forum
“We are encouraged by the growing interest of international financial institutions in Nigeria. Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive,” he added.
On Tuesday, Bloomberg, citing sources with knowledge of the deal, reported that JP Morgan was on course to secure a banking licence in the country after depositing N50 billion ($38 million) with the CBN.
It noted that the bank hopes to receive the licence by year-end or in early 2027, provided it is able to obtain all the requisite approvals
P Morgan’s presence in Nigeria dates back to 1961, when Chase Manhattan Bank, which later evolved into JP Morgan Chase & Co., opened a branch in Lagos, providing a wide range of commercial banking services to local businesses and individuals.
A year earlier, Chase International Investment Corporation, a unit of Chase Manhattan Bank, served as the lead partner in organising Nigerian Textile Mills in Lagos, regarded as the first major private industrial project with an American interest in Nigeria.
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The Bank of Industry (BOI) said it will expand financing for agriculture, local healthcare manufacturing and digital businesses in 2027.
The bank stated this as it seeks to consolidate the gains of its 2025–2027 corporate strategy and strengthen Nigeria’s industrial development.
The bank’s Managing Director and Chief Executive Officer, Olasupo Olusi, disclosed the plan on Thursday at a meeting in Lagos, where he outlined the bank’s priorities for the final year of the strategy.
Mr Olusi said BOI would work with the Federal Ministry of Industry, Trade and Investment on the National Industrial Finance Compact to attract more long-term capital into Nigeria’s industrial sector.
He also said the bank would deploy its new European Investment Bank facilities to agriculture and local healthcare manufacturing to increase domestic production of food and medicines.
The funding includes €85 million secured from the European Investment Bank for agriculture and another €50 million for healthcare manufacturing in 2026, as part of more than €2.2 billion in new funding the bank has secured for Nigerian industry since 2024.
READ ALSO: BOI supports 1.68m jobs as lending rises 26% to ₦644.9 billion
“We will deploy our new European Investment Bank facilities into agriculture and local healthcare manufacturing, so that Nigeria produces more of the food and medicines it consumes,” he said.
The bank also plans to expand its information and communications technology (ICT) and digital economy portfolio through the Investment in Digital and Creative Enterprises (iDICE) programme.
Mr Olusi said the initiatives formed part of the bank’s efforts to consolidate its achievements and meet the targets of its 2025–2027 corporate strategy.
“2027 is the final year of our strategy, and our task is to consolidate and meet every target we set,” the BOI boss, Mr Olusi, said.
BOI said it disbursed N644.9 billion in 2025, reaching 12,501 businesses and supporting 1.68 million jobs.
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