FG pays N18bn severance to 2,700 ex-Nigeria Airways workers, mop-up planned
The Federal Government has begun paying an N18 billion severance settlement to 2,700 former workers of Nigeria Airways Limited, more than two decades after the national carrier was liquidated in 2003. According to the Federal Ministry of Finance, 2,100 beneficiaries in Batches 1 to 7 have already received their payments, while payments to another 600 in Batches 8 and 9 are being finalised and are expected in a matter of days. The ministry said the settlement followed a verification process to confirm eligible beneficiaries and their entitlements.
A second-phase mop-up exercise is being prepared for beneficiaries whose records could not be processed during the first phase, including cases involving deceased workers whose next of kin or estates must complete verification and legal processes. This mop-up is expected to commence by the end of September or early October, subject to final arrangements. The exercise will address outdated information, additional biometric verification and correction of banking details.
The settlement responds to years of demands by former workers and aviation unions for outstanding pensions, gratuities and other entitlements. In July 2025, President Bola Tinubu approved payment of long-awaited pensions to retired aviation workers. Earlier, unions had threatened industrial action over entitlements reportedly valued at N45 billion, with the government approving N22 billion for partial payment in 2018. The latest N18 billion payment is another step in resolving obligations from the airline’s liquidation.
The payment comes as the government reviews a new approach to developing Nigerian flag carriers after suspending the Nigeria Air project, which had proposed Ethiopian Airlines equity and management control. The Managing Director of FAAN said two to three local airlines could receive support to emerge as flag carriers, aiming to increase passenger and cargo traffic across Nigeria’s aviation network.
For former Nigeria Airways workers or their families, ensure your identification, banking and next-of-kind documents are ready for the mop-up exercise. For the public, this settlement shows how the government is addressing long-standing legacy obligations while charting a different path for Nigeria’s flag carrier ambitions.