A former Minister of Aviation, Femi Fani-Kayode, has defended former President Olusegun Obasanjo over the liquidation of Nigeria Airways, arguing that the airline had been crippled by years of mismanagement, corruption and debt before Obasanjo returned to power in 1999.
Fani-Kayode, who served as aviation minister in 2006, said Obasanjo inherited an almost non-functional airline and had little choice but to liquidate it in 2004.
He made the remarks in a post on his X account on Thursday while responding to the Minister of Aviation and Aerospace Development, Festus Keyamo, who had criticised former Vice-President Atiku Abubakar over his comments on Nigeria’s economic hardship and insecurity.
In a post published on Wednesday, Keyamo accused the administration in which Atiku served as vice-president of liquidating Nigeria Airways in September 2004, leaving thousands of workers without jobs and their pensions and gratuities unpaid.
Keyamo said the outstanding entitlements remained unresolved for years, with some former workers dying while waiting for their benefits. He added that President Bola Tinubu had approved and released N36bn to settle the outstanding obligations, with beneficiaries already receiving payment alerts.
The aviation minister also accused Atiku of taking credit for the achievements of the Obasanjo administration while distancing himself from controversial decisions.
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However, Fani-Kayode argued that the airline’s decline began long before Obasanjo’s return to civilian rule.
He wrote: “In fairness to President Obasanjo the Nigeria Airways ‘mess’, as you have described it, was established before he came back to power in 1999.
“And it was indeed a mess but it was not of Obasanjo’s making!
“He met it there after he was sworn in and what he found broke his heart.”
Fani-Kayode recalled that when Obasanjo left office as military Head of State in 1979, Nigeria Airways had 32 functional aircraft, experienced pilots and crew members, a first-class management team and an accountable board of directors.
He described the airline at the time as “the pride of the nation”.
According to the former minister, the airline had deteriorated drastically by the time Obasanjo returned to office 20 years later.
Fani-Kayode said: “By the time Obasanjo came back to power in 1999, 20 years later, there was only one plane left and it was not functional.
“The rest had vanished together with virtually all of the company’s assets.”
He attributed the airline’s decline between 1979 and 1999 to corruption and mismanagement by successive management teams and boards.
Fani-Kayode also said Nigeria Airways was chronically insolvent and operationally crippled, despite attempts to revive it.
He recalled that the International Finance Corporation had advised on privatisation but later withdrew.
He maintained that the Obasanjo administration was justified in refusing to continue committing public funds to the struggling airline.
Fani-Kayode said: “This is why Obasanjo liquidated it in 2004 and I believe that he had no choice.”
He added: “There was nothing left to save even though it was a painful decision given the fact that he was one of those that had done so much for that company when he was Military Head of State.”
The former minister said the payment of outstanding pensions became a major issue following the airline’s liquidation.
He recalled that a committee chaired by the then Head of Service of the Federation, Yayale Ahmed, recommended the release of funds to settle the pension entitlements.
Fani-Kayode said he subsequently presented a memo to the Federal Executive Council in 2006, advocating payment of the outstanding benefits, but the proposal was rejected because some cabinet members believed former management teams and board members responsible for the airline’s collapse did not deserve pensions.
He said: “I did not share that view but sadly I and those that supported me were in a minority and we lost the debate.”
Fani-Kayode added that the issue was revisited under the administration of the late President Umaru Yar’Adua, which paid most of the pensioners, while the administration of former President Muhammadu Buhari also made payments.
He commended Keyamo for ensuring that the remaining pension obligations were settled under the Tinubu administration.
Fani-Kayode wrote: “It is gratifying that under your leadership the remainder of the pensions have been paid. I only wish we had done that when we were in office.”
He added: “The pensioners suffered immensely over the years.
“I have always maintained that paying them was the right thing to do.”
The former minister also referred to Atiku’s position during Federal Executive Council deliberations on the pension payments but declined to disclose the details publicly.
Fani-Kayode said: “As for His Excellency Waziri @atiku I know what side of the divide he was during that debate in council but I will not share that publicly because whatever decision was finally taken was a collective one.”
He maintained that members of the administration collectively bore responsibility for the decision and its consequences, while reiterating his support for paying the former workers their outstanding entitlements.
Fani-Kayode’s comments came as the Federal Government’s reported N36bn payment initiative under Tinubu brought renewed attention to the long-running issue of unpaid pensions owed to former Nigeria Airways employees.
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