FG settles severance benefits for 2,100 former Nigeria Airways workers after two decades

The Federal Government has paid outstanding severance benefits to 2,100 former workers of the defunct Nigeria Airways, more than two decades after the national carrier was liquidated.

The payment covers beneficiaries in Batches 1 to 7, according to a statement issued by the Federal Ministry of Finance on Friday.

Another 600 former workers in Batches 8 and 9 are being processed for payment and are expected to receive their benefits within days, bringing the total number of beneficiaries under the exercise to 2,700.

The ministry said the benefits across the nine batches amount to N18 billion.

Nigeria Airways, which was established in 1958 as the country’s national carrier, ceased operations in 2003 and was liquidated in 2004. Many former workers subsequently spent years pursuing unpaid terminal and severance benefits.

The latest payment follows years of demands by former workers and interventions by the National Assembly and successive administrations over the outstanding liabilities.

In January 2025, the National Assembly Joint Committee on Aviation said the Federal Government owed former Nigeria Airways workers N36 billion and threatened to withhold approval of the aviation budget unless provisions were made for the payment.

How the payment was made

The Ministry of Finance said President Bola Tinubu had earlier approved the settlement of the outstanding severance obligations and directed that the matter be concluded.

Under the direction of the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the ministry said processes were undertaken to identify eligible beneficiaries, validate records and establish the financial obligations before payments commenced.

Mr Oyedele said the payment was part of the government’s effort to address legitimate outstanding obligations.

“Behind these figures are people and families who have waited for years to receive what is legitimately due to them,” he said.

“Our responsibility is to confront outstanding obligations, complete the necessary processes and, once the resources are secured, ensure that the people affected feel the impact of government positively.”

He said the exercise demonstrated what could be achieved when government institutions worked together to resolve longstanding issues.

READ ALSO: NASS panel threatens to withhold aviation budget until Ex-Nigerian Airways workers are paid

The ministry also acknowledged the involvement of the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, and the National Assembly Joint Committees on Aviation in efforts to resolve the matter.

The ministry said the objective was to ensure that legitimate beneficiaries received their approved entitlements while maintaining safeguards around public funds.