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.
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.
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 The exercise will address outdated information, additional biometric verification and correction of banking details.
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.
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.
The latest N18 billion severance settlement therefore represents another step in resolving obligations arising from the liquidation of the former national carrier.
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 proposed support for existing local airlines therefore represents a different route towards developing Nigerian flag carriers rather than reviving the suspended Nigeria Air project.
