Nigeria Airways workers finally get N18 billion severance, 20 years after liquidation

The Federal Government has begun an N18 billion severance settlement covering 2,700 former workers of Nigeria Airways Limited, more than two decades after the national carrier was liquidated.

According to a statement issued on Friday by the Federal Ministry of Finance, 2,100 former workers in Batches 1 to 7 have already received their severance benefits, while payments to another 600 beneficiaries are being finalised.

The ministry said the settlement covers nine batches, with beneficiaries in Batches 8 and 9 expected to receive their payments in a matter of days.

What they are saying

The payment followed a verification process 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.”
• “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,” the statement read in part.

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 planned for outstanding beneficiaries

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 The exercise will address outdated information, additional biometric verification and correction of banking details.

• It will cover cases involving deceased beneficiaries, with their next of kin or estates required to complete the necessary verification and legal processes.
• The exercise 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 exercise is intended to ensure eligible beneficiaries whose records were not processed are also covered.

Get up to speed

The latest settlement follows years of demands by former Nigeria Airways workers and aviation unions for payment of outstanding pensions, gratuities and other entitlements. In July 2025, the 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.
• More than 6,000 former workers were reported by aviation unions to have outstanding pensions and gratuities after the airline was liquidated.
• 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 latest N18 billion severance settlement therefore represents another step in resolving obligations arising from the liquidation of the former national carrier.

What you should know

The settlement comes as the Federal Government considers a different approach to developing Nigerian flag carriers following the suspension of the Nigeria Air project which was launched in the last days of the past administration.

• The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, had earlier said two to three local airlines could receive support to emerge as Nigerian flag carriers.
• Kuku said the initiative is expected to increase passenger and cargo traffic across Nigeria’s aviation network, although she did not name the airlines that could benefit.
• Nigeria Air was unveiled in May 2023 with Ethiopian Airlines proposed to hold a 49% stake, while the Federal Government was to hold 5%, SAHCO 15% and other investors 31%.
• The project was suspended after the House of Representatives raised concerns about the structure of the deal, while Keyamo announced its indefinite suspension in May 2024.
• The proposed 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.

The proposed support for existing local airlines therefore represents a different route towards developing Nigerian flag carriers rather than reviving the suspended Nigeria Air project.