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

The Nigerian government has initiated a N18 billion severance payment to former Nigeria Airways workers, more than two decades after the airline was liquidated, according to a statement by the Federal Ministry of Finance on Friday. Of the 2,700 beneficiaries, 2,100 have already received their payments across nine batches, with the remaining 600 expected to receive their entitlements shortly.

The settlement process involved a verification exercise by the finance ministry to confirm eligibility, validate records, and determine the financial obligations owed to the beneficiaries. The finance minister, Taiwo Oyedele, emphasized the government's commitment to addressing outstanding obligations and ensuring beneficiaries receive their approved entitlements.

The ministry also credited Aviation and Aerospace Development Minister Festus Keyamo and the National Assembly Joint Committees on Aviation for their contributions to the settlement. The government is currently preparing a second-phase exercise to process records of beneficiaries whose information was not properly handled in the initial phase.

This latest payment follows years of demands from former Nigeria Airways staff and aviation unions for the settlement of outstanding pensions, gratuities, and other benefits. The approval of the pension payments in July 2025 marked progress in resolving obligations stemming from the airline's liquidation. The recent N18 billion severance settlement is seen as another step towards addressing the aftermath of Nigeria Airways' liquidation.

The government is also considering alternative approaches to developing Nigerian flag carriers following the suspension of the Nigeria Air project, which had been launched in the previous administration. This shift in strategy indicates a move away from reviving the failed Nigeria Air project towards supporting existing local airlines, signaling a new direction in the nation's aviation sector development.