Federal Government has released an additional N4.04 billion to settle outstanding severance benefits for 600 former employees of Nigeria Airways Limited, more than two decades after the defunct national carrier was liquidated.
Gatekeepers News reports that Maryann Duke, senior special assistant on communications and press secretary to the Minister of Finance, disclosed this in a statement on Monday, October 19, 2026.
The payment covers beneficiaries in batches 010 and 011, bringing the latest disbursement under the settlement programme to another group of former workers awaiting their entitlements.
According to the statement, the gross severance benefits for the 600 beneficiaries amount to N4.251 billion, while deductions total N212.55 million, leaving a net sum of N4.038 billion released for payment.
The ministry said the disbursement was part of the Federal Government’s efforts to settle outstanding obligations to eligible former employees of the defunct airline.
It added that payments were being processed in batches following the verification of beneficiaries and their records to ensure that approved entitlements reached the rightful recipients.
The ministry also acknowledged the prolonged wait experienced by former workers and their families, saying the government remained committed to resolving legitimate outstanding claims through an orderly and transparent process.
The latest release follows the N18 billion payment announced in September 2026 for 2,700 former Nigeria Airways workers across the first nine batches.
At the time, Ministry of Finance said payments had been concluded for 2,100 beneficiaries in batches one to seven, while the remaining 600 workers in batches eight and nine were being processed.
The latest disbursement covers batches 010 and 011, indicating that the settlement exercise has progressed beyond the initial nine batches.
President Bola Ahmed Tinubu had earlier approved the settlement of the outstanding severance obligations, directing the government to conclude the longstanding matter.
The payments follow years of demands by former employees for their terminal benefits after Nigeria Airways ceased operations in 2003 and was liquidated in 2004.
In January 2025, National Assembly Joint Committee on Aviation said Federal Government owed former workers about N36 billion and threatened to withhold approval of the aviation budget unless provisions were made for the outstanding payments.
The government’s latest disbursement represents another step in addressing the claims, although the ministry has not provided a comprehensive update on the number of eligible former workers still awaiting payment.
The Ministry of Finance said it would continue to support the implementation of approved government obligations in line with established procedures and payment processes.
