Minister of Aviation and Aerospace Building Festus Keyamo and his predecessor, Femi Fani-Kayode, have disagreed over the cases surrounding the cave in of Nigeria Airlines and the position the management wherein former Vice-President Atiku Abubakar served performed in liquidating the nationwide provider.
In a video posted on his reliable X account, Mr Abubakar stated Nigerian households are going thru arduous instances and suffering to come up with the money for meals, healthcare, delivery, and hire. On the similar time, many reside in worry of kidnapping and assaults.
“Bola made lifestyles dear. I will be able to paintings to make lifestyles reasonably priced once more and repair the safety each and every Nigerian merits,” he stated.
In reaction, Mr Keyamo accused the previous vice-president of hypocrisy, bringing up the liquidation of Nigeria Airlines in 2004 and the lengthy lengthen in settling its former employees’ entitlements.
He famous that the management of former President Olusegun Obasanjo, wherein Mr Abubakar served because the vice-president, left 1000’s of employees with out pensions and gratuities.
In line with Mr Keyamo, President Bola Tinubu licensed and launched ₦36 billion to settle the previous staff’ remarkable entitlements, including that beneficiaries have begun receiving fee.
“Twenty-two years later, after lots of them have died out of frustration, President Bola Ahmed Tinubu is now clearing the mess you left in the back of,” he stated.
He additionally criticised Mr Abubakar for taking credit score for the Obasanjo management’s achievements when handy, whilst distancing himself from its choices when criticised.
Fani-Kayode defends Obasanjo
Mr Fani-Kayode, Nigeria’s aviation minister from November 2006 to Might 2007, challenged Mr Keyamo’s account of the airline’s cave in in a publish on X on Thursday.
He asserted that the airline was once already in critical decline sooner than Mr Obasanjo returned to energy in 1999, and went additional to mention Nigeria Airlines had 32 useful plane when the previous president left workplace as an army head of state in 1979. Nonetheless, by way of 1999, he had just one plane left.
“The corporate was once liquidated essentially because of persistent insolvency, operational cave in and mismanagement in its operations which happened between 1979 and 1999,” he stated.
Mr Fani-Kayode argued that the Obasanjo management had very little selection however to liquidate the airline after years of decline and failed makes an attempt to restore it.
He additionally disputed the declare that the management was once only answerable for the unpaid entitlements of former staff, announcing the problem in their pensions remained unresolved even after the airline was once wound up.
Mr Fani-Kayode stated that, as aviation minister in 2006, he offered a memorandum to the Federal Government Council in the hunt for approval to pay remarkable pensions to former Nigeria Airlines employees.
In line with him, the memorandum was once rejected after some cupboard contributors adverse the fee, arguing that former board contributors and control officers contributed to the airline’s cave in.
Mr Fani-Kayode stated he disagreed with that place however may just now not safe acclaim for the proposal.
He added that the topic was once taken up by way of the management of former President Umaru Musa Yar’Adua, which paid lots of the pensioners. On the similar time, the management of Muhammadu Buhari additionally made bills.
Mr Fani-Kayode recommended the present management for settling the phenomenal entitlements however stated the bills must had been made previous.
How Nigeria Airlines collapsed
Nigeria Airlines began in 1958 as WAAC (Nigeria) Ltd, following the restructuring of the West African Airlines Company. The Federal Govt at the beginning held a 51 in step with cent stake in it, whilst different stocks had been held by way of Elder Dempster Strains and British In another country Airlines Company. The federal government turned into the airline’s sole shareholder in 1961.
The airline operated home and global routes, connecting Nigerian towns with locations throughout Africa, Europe and North The us. At its top, it was once a distinguished a part of the rustic’s aviation trade.
On the other hand, its fortunes deteriorated over a number of many years amid mounting debt, deficient control, political interference, overstaffing, and corruption allegations.
The airline had a fleet of 32 aircraft in 1984, which fell to a few by way of October 2000. Through Might 2003, its fleet had reportedly contracted to at least one plane amid monetary misery and operational difficulties.
The airline’s monetary bother additionally affected its global operations. In early 1987, the Global Air Shipping Affiliation suspended it from its clearing area over accrued money owed exceeding $1.1 million. The suspension constrained its talent to factor tickets involving different member airways in the course of the clearing machine.
Investigation into alleged corruption
The airline’s decline additionally brought about an investigation into allegations of corruption and monetary mismanagement.
In 2001, the Obasanjo management appointed a judicial commission to investigate the airline’s affairs right through army rule from 1983 to 1999.
A November 2003 report by way of South Africa’s Trade Document stated a central authority white paper at the investigation detailed an alleged $400 million graft case involving former aviation ministers, former managing administrators, and different officers related to the airline.
The record additionally stated the investigation known alleged over-invoicing, questionable bills, and different monetary irregularities. It additionally reported that the fee advisable convalescing greater than $400 million from corporations and previous officers implicated in its findings, with some people advisable for prosecution.
Efforts to rescue the provider thru restructuring and privatisation failed to revive its operations. The Global Finance Company, the International Financial institution Workforce’s private-sector arm, was once engaged to advise at the privatisation procedure however later withdrew.
The airline ceased operations in 2003.
FG can pay N18bn in former employees’ advantages
The dispute over Nigeria Airlines has persevered lengthy after the airline stopped running, specifically over the pensions and severance advantages owed to its former staff.
In January 2025, PREMIUM TIMES reported that the Nationwide Meeting’s Joint Committee on Aviation stated the Federal Govt owed former Nigeria Airlines employees N36 billion. The lawmakers threatened to withhold approval of the aviation finances except provisions had been made for the fee.
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In Might 2026, former employees once more appealed to the Federal Govt to free up the phenomenal entitlements. In July, a ministerial committee was preparing to oversee the disbursement.
On 12 September, PREMIUM TIMES reported that the Federal Govt had paid severance advantages to two,100 former employees, whilst any other 600 beneficiaries were cleared for fee. The advantages around the 9 batches amounted to N18 billion.
The Ministry of Finance stated President Tinubu had previous licensed the agreement and directed that the topic be concluded. The ministry stated the method concerned figuring out eligible beneficiaries, validating data, and setting up monetary duties sooner than bills started.
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