FG pays N4.25bn to 600 more former Nigeria Airways workers

The Federal Government has paid N4.25 billion in outstanding pension and severance benefits to another 600 former employees of the defunct Nigeria Airways Limited, bringing the total number of beneficiaries paid to 3,300.

The latest disbursement covers the 10th and 11th batches of beneficiaries, according to a statement issued on Tuesday by the Federal Ministry of Finance.

The ministry’s Head of Media, Efe Ovuakporie, said the payment formed part of the government’s efforts to settle longstanding financial obligations to former employees of the national carrier.

“The Federal Government has paid N4.25bn in outstanding pension and severance benefits to an additional 600 beneficiaries of Nigeria Airways Limited, bringing the total number of beneficiaries paid across 11 batches to 3,300,” the statement said.

The ministry said the first nine batches covered 2,700 beneficiaries, while the latest payment extended the exercise to another 600 eligible individuals.

The latest disbursement brings the reported gross payments to N22.25 billion, comprising the N18 billion previously announced for 2,700 beneficiaries and the additional N4.25 billion.

However, the ministry did not disclose the total amount paid across all batches in its latest statement or the outstanding liability to former workers and their families.

More than two decades of unpaid benefits

In January 2025, the National Assembly Joint Committee on Aviation said the Federal Government owed former Nigeria Airways workers N36 billion. The lawmakers threatened to withhold approval of the aviation ministry’s budget unless provisions were made to settle the outstanding obligations.

At the time, lawmakers said some former employees had died while waiting for their entitlements, while others were facing financial hardship.

In September, PREMIUM TIMES reported that the Federal Government had begun paying N18 billion in outstanding severance benefits to 2,700 former Nigeria Airways workers, more than two decades after the airline ceased operations.

The government said it had paid 2,100 former workers in the first seven batches, while another 600 beneficiaries were being processed for payment. The nine batches were expected to cover 2,700 people, with the benefits totalling N18 billion.

The airline, established in 1958, ceased operations in 2003 and was liquidated in 2004. Its closure left unresolved pension and severance obligations, prompting years of demands from former employees and their families for payment of their entitlements.

The dispute has continued through successive administrations.

Payments to deceased workers’ families

The Ministry of Finance said the verification and validation of claims submitted by the next of kin of deceased former Nigeria Airways employees were ongoing.

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According to the ministry, the exercise is intended to establish eligibility and reconcile claims with approved records before payments are authorised.

“The Ministry will continue to process verified claims in line with applicable procedures, ensuring that payments are made to eligible beneficiaries,” the statement said.

The ministry said the latest disbursement would provide financial relief to former workers who had waited years for their entitlements and would help resolve verified outstanding claims.