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 Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
