The Federal Government has commenced payment of N18 billion in severance benefits to 2,700 former workers of Nigeria Airways Limited, more than two decades after the national carrier was liquidated in 2003.
A statement issued on Friday by the Federal Ministry of Finance confirmed that 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 settlement covers nine batches, and beneficiaries in Batches 8 and 9 are expected to be paid within days.
The disbursement followed a verification exercise by the Federal Ministry of Finance to identify eligible beneficiaries, validate records and determine the financial obligations owed to them.
According to the ministry, “Batches 8 and 9, comprising 600 beneficiaries are being finalised with the beneficiaries scheduled to receive their payments in a matter of days.”
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.
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 The exercise will address outdated information, additional biometric verification and correction of banking details.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 also cover cases involving deceased beneficiaries, with their next of kin or estates required to complete the necessary verification and legal processes. The mop-up is expected to begin 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 exercise is intended to ensure eligible beneficiaries whose records were not processed are also covered.
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 previously reported that more than 6,000 former workers had outstanding pensions and gratuities after the airline was liquidated. In 2018, 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 N36 billion remained outstanding, and the National Assembly Joint Committee on Aviation renewed pressure for settlement in January 2025. In July 2025, President Bola Tinubu approved the payment of long-awaited pensions to retired aviation workers, including former employees of the defunct airline.
