More than two decades after the collapse of Nigeria’s former flag carrier, a generation of aviation professionals remains locked in a prolonged struggle for compensation, a situation that continues to cast a long shadow over the country’s aviation sector.

Former employees of Nigeria Airways are once again urging the federal government to release NGN36 billion, approximately USD26 million, in severance benefits approved in June 2025 by President Bola Ahmed Tinubu. The payment was intended to resolve a decades long dispute dating back to the airline’s liquidation in 2004. Yet nine months after the presidential directive, the funds have still not been disbursed.

Representatives of the former workforce warn that the delay has moved beyond administrative backlog into a humanitarian concern. Many of the affected workers are now elderly, and according to their spokesperson Sheri Kyari, a number are living in severe hardship, unable to afford basic necessities such as food, shelter, and medical care. Some have reportedly died without receiving their entitlements.

A Struggle Across Administrations

The issue has spanned multiple governments, reflecting a persistent failure to bring closure to one of Nigeria’s most enduring labour disputes. While partial payments were approved under former president Muhammadu Buhari, a significant balance remained outstanding until last year’s approval.

The continued delay now raises questions about execution within government structures and the gap between policy decisions and implementation. Appeals have been directed to the finance ministry under Wale Edun, yet progress has yet to materialise, further deepening frustration among former staff.

From National Pride to Decline

Established in 1958 following the dissolution of the West African Airways Corporation, the airline began as a joint venture before becoming fully state owned by 1961. In its early years, it provided vital domestic and regional connectivity across West Africa.

By the 1970s and early 1980s, Nigeria Airways had entered a period of expansion and ambition. Operating a growing fleet that included Boeing 707 aircraft and later Airbus A310s, the airline connected Lagos to key international destinations such as London, Jeddah, Dubai, and New York. At its peak, it operated approximately 30 aircraft and stood as a symbol of national pride and technical capability.

The Cost of Mismanagement

However, this growth proved unsustainable. From the mid 1980s, a combination of economic pressures and internal inefficiencies began to erode the airline’s viability. Declining oil revenues, currency devaluation, and rising operational costs were compounded by mismanagement, overstaffing, corruption, and mounting maintenance challenges.

Reliability deteriorated, and financial losses deepened. By the time operations ceased in 2003 under the administration of Olusegun Obasanjo, Nigeria Airways had accumulated debts estimated at more than USD500 million. Its fleet had dwindled to only a handful of operational aircraft, marking a dramatic fall from its earlier prominence.

An Unresolved Legacy

The formal liquidation in 2004 brought an end to nearly half a century of operations, but it did not resolve the obligations owed to its workforce. Instead, it marked the beginning of a long and often contentious campaign for severance and pension payments.

For many of the former employees, the issue is no longer simply financial. It is about recognition of service, dignity in retirement, and the fulfilment of commitments made by the state. The airline may no longer exist, but its human legacy remains very much alive.

A Test of Accountability

As Nigeria continues to explore the possibility of establishing a new national carrier, the unresolved case of Nigeria Airways serves as a cautionary reference point. It highlights the importance of governance, financial discipline, and above all, accountability to those who sustain the industry.

For the former staff still waiting, time is an increasingly critical factor. With each passing year, the number of surviving claimants diminishes. What remains is a pressing question for the present administration: whether it will finally close a chapter that has remained open for 23 years or allow it to become a permanent stain on the country’s aviation history.