Economy
FG Slashes Ex-Nigerian Airways Workers’ Package by 45%
By Modupe Gbadeyanka
The final severance package of N78 billion for former workers of liquidated national carrier, Nigeria Airways, has been reduced by 45 percent, Daily Independent is reporting.
The paper, in its investigation, gathered that the Presidential Initiative on Continuous Audit (PICA) set up by President Muhammadu Buhari in its recommendation slashed the sum to just N43 billion.
However, Minister of State for Aviation, Mr Hadi Sirika, is vehemently against this development, insisting that the earlier approved sum of N78 billion must be paid to the beneficiaries.
Daily Independent is reporting that “the reduction of a massive N35 billion from the recommended and approved N78 billion by the Inter-Ministerial Committee is causing ripples in the presidency.”
Also, investigations by the paper reveal that this move may backfire for the Federal Government, which is contemplating on floating a new national carrier.
It was learnt that international creditors of the former carrier are preparing to sue the government over its plans to set up a new national carrier without first settling its old debts with them.
Since Nigerian Airways was liquidated in 2003 by President Olusegun Obasanjo, no fewer than 700 of the former workers had died of various illnesses.
Reduction of Severance Package
The Inter-Ministerial Committee set up by the Federal Government in 2006 had recommended the sum of N78 billion as the total severance package for 10 years for the workers, including pension arrears for the period after the physical verification of about 6,000 beneficiaries. But the Presidential Initiative on Continuous Audit (PICA) set up by President Muhammadu Buhari in its recommendation slashed the sum to just N43 billion, a 45 percent reduction.
PICA, at reaching the N43 billion, it was gathered, removed the 10 years pension arrears as agreed with the former workers, their unions and the Inter-Ministerial Committee.
However, the reduction of a massive N35 billion from the recommended and approved N78 billion by the Inter-Ministerial Committee is causing ripples in the presidency as the Minister of State for Aviation, Mr Hadi Sirika, is insisting that the earlier approved sum must be paid.
Agreement with Staff
Also, the former workers in one of their meetings with President Muhammadu Buhari had agreed to reduce the pension arrears to 10 years from the agreed 25 years during the time of the late President Umar Yar’Adua in 2009, but with a proviso that the 10 years pension arrears would be paid, which the government accented to.
Apart from the Nigerian staff of the airline, outstations like those in Rome, Saudi Arabia, Benin Republic, Cameroon, Dubai and all the French speaking countries in Africa would also benefit from the severance package, which have been lingering since the liquidation of the airline in 2003 by former President Olusegun Obasanjo.
Only employees of the former airline in United Kingdom and United States were paid their entitlements of 25 years severance package in full by the Federal Government.
Minister’s Letter to President
A document made available to Independent by a source close to the presidency dated August 10, 2016 with reference number Ref: TCA0036/S.I/T6/183, addressed to President Muhammadu Buhari by Mr Sirika vehemently negated the N43 billion recommendations by PICA.
Mr Sirika in the letter with the theme, ‘Settlement of the terminal benefits of ex-workers of Nigeria Airways (in-liquidation) – Appeal for Mr President Intervention,’ recalled that the Federal Executive Council (FEC) at its meeting of May 21, 2003, approved the liquidation of the airline vide Conclusion 35 and Council Resolution No. EC (2003) 145 following which Bureau for Public Enterprises (BPE) was directed to effect the liquidation.
Sirika, however, observed that before the company was liquidated, there was no proper determination of the worth of the company in terms of income on realisable assets vis-à-vis the liabilities in form of entitlements of staff that would be affected. Government insisted that the workers must be paid their entitlements in full.
The document indicated that the sum of N29.1 billion, which represented five years severance package, were paid to the former workers of the airline.
Mr Sirika in the letter to Buhari warned that Nigeria may never have a national carrier again until all the staff especially foreign nationals are paid off.
The letter reads in part: “Following from the above, the ministry arrived at a decision to compute additional 10 years pension pay-off to make up 15 years (being one of the options recommended by the Inter-Ministerial Committee), instead of the 20 years pay-off demanded by the ex-workers.
“To this end, the entitlements of all categories of beneficiaries were updated and verified in accordance with the inter-ministerial template.
“It is imperative that the liability is paid-off because if unpaid it may stall the resolve to create a national carrier as the international creditors of the defunct Nigeria Airways may sue the new entity as having tangential relationship with the former.”
Payment Will Stop Agitations
Besides, another document made available to Independent on the issue by a union, Aviation Unions Grand Alliance (AUGA), stated that with the full and final payment of the workers by the Federal Government all instituted court cases against the government would be dropped.
The document dated November 7, 2016 with reference number: AUGA/NUPF.1/16/FMA was signed by seven leaderships of the ex-workers of the liquidated carriers— Capt. M.O. Wekpe, Chairman of National Association of Aircraft Pilots and Engineers (NAAPE) for pilots; Engr. L.O. Animashaun, Chairman of NAAPE (Engineers) and Comrade I.N Wusaini, Chairman of Air Transport Services Senior Staff Association of Nigeria (ATSSSAN).
Others are Comrade Lucky Engbele, Chairman of the National Union of Air Transport Employees (NUATE); Comrade Sam Nzene, Chairman, National Union of Pensioners (NUP); Engr. O. Animashaun, Chairman of AUGA and Comrade Sam Nzen, Chairman of NUP.
The document reads in part: “The approval and subsequent payment of supplementary compilation, 33 percent pension increases, outstanding pension arrears and additional 10 years pension pay off to all categories of our members will bring to a close all agitations from the above-mentioned unions.”
Source: Daily Independent.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited returned to winning ways on Tuesday after it closed higher by 2.30 per cent amid cautious trading.
Yesterday, investor sentiment at the Nigerian stock market was weak after finishing with 37 price gainers and 40 price losers, indicating a negative market breadth index.
It was observed that the industrial goods sector rose by 4.86 per cent, the energy index appreciated by 4.66 per cent, and the consumer goods segment soared by 2.74 per cent. They offset the 1.38 per cent loss recorded by the banking counter and the 0.20 per cent decline printed by the insurance sector.
At the close of business, the All-Share Index (ASI) was up by 5,137.90 points to 228,740.19 points from 223,602.29 points, and the market capitalisation went up by N3.308 trillion to N147.278 trillion from N143.970 trillion.
The trio of FTN Cocoa, Industrial and Medical Gases, and Lafarge Africa gained 10.00 per cent each to sell for N5.50, N39.60, and N324.50, respectively, while Austin Laz grew by 9.71 per cent to N3.73, and Aradel Holdings jumped 9.52 per cent to N1,840.00.
On the flip side, UBA lost 10.00 per cent trade at N44.55, Trans-Nationwide Express slipped by 9.99 per cent to N6.40, NASCON crashed by 9.18 per cent to N187.90, Jaiz Bank depreciated by 8.93 per cent to N8.01, and Berger Paints crumbled by 8.66 per cent to N68.00.
Yesterday, market participants traded 908.0 million equities valued at N68.2 billion in 72,886 deals compared with the 678.2 million equities worth N44.1 billion transacted in 82,838 deals on Monday, showing a drop in the number of deals by 12.01 per cent, and a spike in the trading volume and value by 33.88 per cent and 54.65 per cent, respectively.
By Adedapo Adesanya
Nigeria’s oil production recorded a five-year high of 1.71 million barrels per day, marking a significant rebound for the country’s upstream sector amid renewed efforts to restore output and improve operational stability.
The latest figure, released by Nigerian National Petroleum Company (NNPC) Limited, covers the period from April 2025 to April 2026 and underscores a steady recovery in crude production after years of disruptions caused by theft, pipeline vandalism and underinvestment.
According to the chief executive of the national oil company, Mr Bayo Ojulari, the performance reflects measurable progress across the company’s upstream, gas and downstream operations, with production gains supported by improved asset management and stronger field performance.
Within its exploration and production business, NNPC recorded a peak daily output of 365,000 barrels in December 2025, the highest level ever achieved by its upstream subsidiary. The company also advanced key contractual reforms, including revised production-sharing terms for deepwater assets aimed at unlocking additional gas reserves.
Nigeria’s gas ambitions are also gaining traction. Gas supply rose to 7.5 billion standard cubic feet per day in 2025, driven by major infrastructure milestones such as the River Niger crossing on the Ajaokuta-Kaduna-Kano pipeline and the commissioning of the Assa North-Ohaji South gas processing plant.
These investments are beginning to strengthen domestic gas utilisation. New supply agreements with major industrial consumers, including Dangote Refinery, Dangote Fertiliser and Dangote Cement, are expected to deepen gas penetration across manufacturing and power generation.
On the downstream front, NNPC has continued crude supply to Dangote Refinery under the crude-for-naira arrangement, a policy designed to reduce foreign exchange demand, support local refining and improve fuel market stability. The company also reaffirmed its 7.25 per cent equity stake in the refinery as part of its long-term energy security strategy.
Financially, the national oil company said it has resumed full monthly remittances to the Federation Account since July 2025. It has also reinstated regular performance reporting and held its first earnings call, moves widely seen as part of a broader push towards greater transparency and corporate accountability.
Despite the progress, challenges remain. Crude theft, pipeline outages and infrastructure bottlenecks continue to threaten production stability. Sustaining this recovery will depend on stronger security, reliable infrastructure and policy consistency as Nigeria seeks to maximise the benefits of rising domestic refining capacity.
By Adedapo Adesanya
The United Arab Emirates has announced its decision to quit the Organisation of the Petroleum Exporting Countries (OPEC) to focus on national interests.
This dealt a heavy blow to the oil-exporting group at a time when the US-Israel war on Iran had caused a historic energy shock and rattled the global economy.
The move, which will take effect on May 1, 2026, reflects “the UAE’s long-term strategic and economic vision and evolving energy profile”, a statement carried by state media said on Tuesday.
“During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” it added. “However, the time has come to focus our efforts on what our national interest dictates.”
The loss of the UAE, a longstanding OPEC member, could create disarray and weaken the oil cartel, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.
UAE Energy Minister Suhail Mohamed al-Mazrouei said the decision was taken after a careful look at the regional power’s energy strategies.
“This is a policy decision. It has been done after a careful look at current and future policies related to the level of production,” the minister said.
OPEC’s Gulf producers have already been struggling to ship exports through the Strait of Hormuz, a narrow chokepoint between Iran and Oman through which a fifth of the world’s crude oil and liquefied natural gas supplies normally pass, because of threats and attacks against vessels during the war.
The UAE had been a member of OPEC first through its emirate of Abu Dhabi in 1967 and later when it became its own country in 1971.
The oil cartel, based in Vienna, has seen some of its market power wane as the US has increased its production of crude oil in recent years.
Additionally, the UAE and Saudi Arabia have increasingly competed over economic issues and regional politics, particularly in the Red Sea area.
The two countries had joined a coalition to fight against Yemen’s Iran-backed Houthis in 2015. However, that coalition broke down into recriminations in late December when Saudi Arabia bombed what it described as a weapons shipment bound for Yemeni separatists backed by the UAE.
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