FG to settle N45bn ex-Airways debt, contractors liabilities 

…Pays N34.2bn workers’ arrears

Uche Usim, Abuja

Agitating retirees of defunct Nigeria Airways Limited may now heave a sigh of relief as the Minister of Finance, Mrs. Kemi Adeosun, on Tuesday, assured that the Federal Government would settle their N45 billion pending arrears.

She also said the government would clear outstanding obligations to local contractors between 2006 and 2015.

The Minister made this known when she appeared before the Ad-hoc Committee of the Senate on “Promissory Note Programme and Bond Issuance”, chaired by the Deputy Chief Whip, Senator Francis Alimikhena.
According to the Minister, the debts owed various classes of contractors, including the terminal benefits of ex-Nigerian

Airways workers, would be paid through promissory notes and bonds issuance.
Adeosun stated that the unpaid Federal Government obligations constituted a drag on economic activity across many sectors, adding that the present administration was determined to address the problem.

She listed the unpaid obligations to include arrears owed pensioners, and salary and promotion arrears to civil servants; obligations to contractors and suppliers who in turn, owe banks increasing the quantum of non-performing loans, and unpaid electricity bills by the Ministries, Departments and Agencies (MDAs).

Others include exporters owed funds under the Export Expansion Grant Scheme and unpaid refunds due to state governments in respect of projects undertaken on behalf of the Federal Government.

“The Federal Government is working towards settling these inherited debts. The Small and Medium Enterprises (SMEs) are the lifeline of our nation. The Federal Government will be stimulating the economy by paying these legacy debts,” Adeosun told members of the Ad-hoc Committee.
Government, according to her, has approved the issuance of promissory notes and bonds to settle its contractual obligations subject to the approval of the National Assembly.

On the ex-Nigerian Airways workers, the Minister explained that their terminal benefits were reconciled and agreed at N45 billion following verification.
She debunked claims by the ex-workers that there was a presidential approval for the payment of terminal benefits of N45 billion to the workers.

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