FG Begins N18bn Severance Payment to 2,700 Nigeria Airways Ex-Workers, Two Decades After Liquidation

The Federal Government has begun an N18 billion severance settlement for 2,700 former workers of Nigeria Airways Limited, more than two decades after the national carrier was liquidated. The Federal Ministry of Finance said in a statement on Friday that 2,100 former workers in Batches 1 to 7 have already been paid, while payments to another 600 beneficiaries are being finalised.

The settlement covers nine batches. Beneficiaries in Batches 8 and 9, made up of 600 people, are expected to receive their payments in a matter of days, the ministry said.

Verification Before Payment

The payment followed a verification exercise by the Federal Ministry of Finance to identify eligible beneficiaries, validate their records and determine the financial obligations owed to them.

"The Federal Government has concluded payment of outstanding severance benefits to 2,100 former workers of Nigeria Airways Limited, more than two decades after the national carrier was liquidated," the statement said.

"Batches 8 and 9, comprising 600 beneficiaries are being finalised with the beneficiaries scheduled to receive their payments in a matter of days. This brings the number of former Nigeria Airways workers covered by the payment to 2,700, with total benefits of N18 billion across the nine batches."

Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, said the exercise reflects the Federal Government's determination to address legitimate outstanding obligations and ensure beneficiaries receive their approved entitlements.

The ministry also acknowledged the role of Aviation and Aerospace Development Minister Festus Keyamo and the National Assembly Joint Committees on Aviation in advancing the settlement.

Mop-Up Exercise for Unprocessed Records

The ministry said it is preparing a second-phase mop-up exercise for beneficiaries whose records could not be processed in the first phase. It will address outdated information, additional biometric verification and correction of banking details.

The exercise will also cover cases involving deceased beneficiaries, whose next of kin or estates will be required to complete the necessary verification and legal processes. It is expected to commence by the end of September or early October, subject to final arrangements.

Seldam Dangin, Director of the Presidential Initiative and Continuous Audit Department, said the mop-up is meant to ensure eligible beneficiaries whose records were not processed are also covered.

Years of Unpaid Entitlements

The settlement follows years of demands by former Nigeria Airways workers and aviation unions for outstanding pensions, gratuities and other entitlements.

In July 2025, President Bola Tinubu approved the payment of long-awaited pensions to retired aviation workers, including former employees of the defunct airline.

Nigeria Airways operated from 1958 until its liquidation in 2003 and employed thousands of workers across pilots, engineers, cabin crew, administrative and ground operations. Aviation unions reported that more than 6,000 former workers had outstanding pensions and gratuities after the liquidation.

In 2018, aviation unions threatened industrial action over outstanding entitlements reportedly valued at N45 billion, while the government approved N22 billion for partial payment. Union records later indicated that N36 billion remained outstanding, while the National Assembly Joint Committee on Aviation renewed pressure for settlement in January 2025.

The N18 billion severance settlement is another step in clearing obligations arising from the liquidation of the former national carrier.

The payment comes as the Federal Government considers a different route to developing Nigerian flag carriers after the suspension of the Nigeria Air project. The Managing Director of the Federal Airports Authority of Nigeria, Olubunmi Kuku, had said two to three local airlines could receive support to emerge as flag carriers, though she did not name them.

Nigeria Air was unveiled in May 2023 with Ethiopian Airlines proposed to hold a 49% stake, the Federal Government 5%, SAHCO 15% and other investors 31%. The project was suspended after the House of Representatives raised concerns about the deal structure, and Keyamo announced its indefinite suspension in May 2024. The arrangement would have required Nigeria to pay about $112 million over three years for the use of Ethiopian Airlines' aircraft, with key management positions controlled by the Ethiopian carrier.