Former staff at Air Nigeria say they have been unfairly sacked. Many say they have not been paid for months and that the ailine has failed to report their pension contributions and taxes to the authorities.
The trouble started in May when some airline employees went on strike after claiming that they were not being paid their salaries. But Jimoh Ibrahim, the owner of the airline, denied that Air Nigeria was having any financial problems at the time.
The airline announced it was shutting down operations on Wednesday and fired nearly 1,000 people.
Yvonne Ndege reports from Lagos.