After a 22-year delay, the Federal Government has approved the payment of ₦45 billion in pension arrears to over 6,000 retired employees of the defunct Nigeria Airways. The National Orientation Agency announced the approval on 22 July 2025, with disbursement expected to begin shortly.
This decision marks a major milestone in addressing pension-related grievances in Nigeria’s aviation sector and brings long-overdue relief to affected retirees.
Nigeria Airways, originally established in 1958 as West African Airways Corporation Nigeria (WAAC Nigeria), became the nation’s official carrier in 1961 following its full acquisition by the Federal Government. The airline operated from Murtala Muhammed International Airport in Lagos, offering regional and international flights to destinations in West Africa, Europe, North America, and the Middle East.
At its peak in the 1980s, the airline ran a fleet of about 30 aircraft, including Boeing 737s and 747s, and was notable for operating the last McDonnell Douglas DC-10 ever manufactured.
Decades of alleged mismanagement, overstaffing, and financial misappropriation led to the airline’s collapse. By 2003, debts had mounted to $528 million, prompting the administration of then-President Olusegun Obasanjo to liquidate the company in 2004.
Thousands of workers were left without pensions or gratuities, leading to widespread financial hardship. Several died without receiving any compensation, while others continued to fight for their entitlements. The issue was consistently raised by aviation unions, including: the National Union of Air Transport Employees (NUATE), Air Transport Senior Staff Services Association of Nigeria (ATSSSAN), and the National Association of Aircraft Pilots and Engineers (NAAPE)
In 2018, the Muhammadu Buhari administration approved a partial payment of ₦22 billion. However, a ₦36 billion balance remained outstanding. Earlier in January 2025, the National Assembly Joint Committee on Aviation threatened to withhold budget approval for the Ministry of Aviation if the funds were not included.
The recent approval of the full ₦45 billion was secured through the intervention of Minister of Aviation and Aerospace Development, Festus Keyamo. Union leaders hailed the development as a “victory for perseverance and fairness.”
Speaking on the significance of the payment, union representatives noted that it restores the dignity of former Nigeria Airways staff—pilots, engineers, air traffic controllers, and ground crew—who served the nation diligently.
The Ministry has assured all stakeholders that the disbursement process will be transparent and equitable.
A minute of silence was observed in honour of retirees who died without receiving their pensions. Union officials described the payment not just as financial compensation but as a symbolic act of justice and recognition.
This development is widely seen as a step forward in rebuilding trust in government’s commitment to workers’ welfare, particularly in the aviation and public service sectors.
