The Federal Government is weighing the liquidation of Dana Air’s assets to repay passengers and travel agents whose funds have remained trapped since the airline’s suspension.
Aviation Minister Festus Keyamo disclosed the plan during the ministry’s fourth-quarter stakeholders’ engagement in Abuja, describing it as a necessary step to enforce accountability and restore trust in Nigeria’s aviation sector.
Keyamo said the Ministry of Aviation will direct the Nigeria Civil Aviation Authority (NCAA) to investigate why refunds have not been processed months after operations were halted. He emphasized that safety, not commercial considerations, compelled regulators to shut down the airline following a series of troubling technical and operational findings.
“For Dana, the problem is that it was a choice between safety and disaster. So, we didn’t take the commercial thing as priority. The priority was safety, and we all looked at the damning reports that we had met on the table,” he said.
Asset Liquidation on the Table
The minister added that the government is now exploring several mechanisms to ensure affected passengers and travel agencies receive their money.
“I have asked Najomo (Director General of NCAA) to dig deep to find out how those passengers and agents will be refunded… One solution will also be that if that same individual or those entities are trying to come back to aviation under any guise… they have to go and settle their debts first,” Keyamo said.
He added: “We should look at their assets. There are assets that are still available. Let them sell their assets. Let’s cannibalize their revenue and pay people. Let’s find a way to go after their assets and get money to pay Nigerians who are owed. NCAA should do that because they can’t get away with it.”
Background on Dana Air’s Troubles
Dana Air has faced years of financial, operational and safety issues that have triggered repeated regulatory interventions. In April 2024, Keyamo revealed that a 2022 NCAA audit found the carrier financially and operationally unfit, with multiple infractions accumulated over several years.
The minister explained on Channels Television that the airline’s runway incursion incident in Lagos earlier that month only intensified concerns, especially given previous episodes, including a 2018 case where a cabin door detached shortly after landing.
Regulatory Concerns Over License Renewal
Keyamo noted that it remains unclear how the troubled airline regained its operating license after the 2022 audit. According to him, the audit revealed liabilities consistently exceeding assets since 2018, and the airline had been operating with negative equity for years, issues serious enough to justify the suspension of its operating certificates.
What This Means for the Aviation Sector
The threat of asset liquidation signals a more assertive regulatory posture in a sector long criticized for weak enforcement. It also underscores the government’s intent to protect consumers, strengthen aviation safety oversight and prevent financially distressed airlines from putting passengers at risk.