The Federal Government has reached a landmark agreement with Bi‑Courtney Limited and Stabilini Visinoni Limited over the Murtala Muhammed Airport Terminal Two, MMA2, concession in Lagos, bringing to an end a protracted dispute that spanned nearly two decades and was marked by multiple court battles.
Aviation and Aerospace Development Minister Festus Keyamo announced the settlement on Tuesday, noting that it will allow the Federal Airports Authority of Nigeria, FAAN, to resume collecting concession fees from MMA2.
He added that it would also clear the way for completing abandoned hotel and conference centre projects near the airport.
Keyamo explained that the Federal Executive Council,FEC, approved the settlement framework on April 30, 2026, under President Bola Tinubu’s administration.
He hailed the agreement as a milestone for the aviation sector, stressing that years of litigation had stalled progress and delayed key projects.
Under the agreement, Bi-Courtney will waive outstanding claims against the Federal Government.
At the same time, the government and FAAN will release specified historical claims against the concessionaire, including accumulated concession fees and related payments arising before the settlement.
The minister also explained that the arrangement was a reciprocal settlement in which both parties agreed to relinquish past claims in favour of a new contractual relationship with defined financial and operational obligations.
The settlement also addresses the disagreement over the General Aviation Terminal, known as the old domestic terminal or MM1.
Keyamo said the agreement recognises the General Aviation Terminal as Federal Government property, operated by FAAN, following a series of court proceedings over the parties’ competing claims.
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In return, the government has agreed to allow Bi-Courtney to expand its apron and accommodate regional flights within Africa at MMA2, subject to the terminal’s capacity.
The agreement also restores rights relating to the hotel and conference centre, which have remained incomplete for years following a separate dispute over their leases.
Keyamo urged Bi-Courtney chairman Wale Babalakin to complete the abandoned buildings, describing them as an eyesore for airport users.
He added that completing the facilities would improve the airport’s surroundings and create jobs.
The dispute began with a concession agreement the Federal Government and the two companies signed on April 24, 2003, for the design, construction, operation, and eventual transfer of the domestic terminal.
The concession, which initially provided for a 12-year term commencing on May 7, 2007, was subsequently extended to 36 years.
Disagreements over financial entitlements, the terminal’s operations, and ownership of related airport facilities led to prolonged litigation across multiple courts, including the Supreme Court.
A separate dispute arose over leases for the hotel and conference centre, which FAAN terminated in April 2012 over alleged failure to meet construction obligations. Bi-Courtney challenged the termination in court.
Keyamo said the negotiations required sustained engagement between the parties, adding that his legal background and Babalakin’s helped them examine the issues and find common ground.
Keyamo said the government and the concessionaire would now be expected to fulfil their respective financial, construction and operational obligations, while FAAN would provide the necessary cooperation.
He stressed that the agreement would protect regulatory oversight, airport security, emergency arrangements, and maintenance standards.
Babalakin expressed gratitude to President Tinubu and Minister Keyamo for steering the long‑awaited agreement, noting that the settlement, unresolved for over 18 years prior, would unlock new investments, create well‑paying jobs, and enhance the airport’s overall environment.
He said: “We must thank President Bola Tinubu for resolving this issue. It has been on for over 18 years; the facts are the same, the issues are the same, yet it remained unresolved until President Tinubu, through his minister, Mr Festus Keyamo, found a solution. We are very grateful.
“This is going to unleash several quality jobs into the system immediately. I mean quality jobs. These are jobs that pay very well. It will also significantly improve the airport’s facade because the abandoned projects were an eyesore.
“It is going to encourage a lot of people who feel daunted and discouraged when they have government issues that there is a possible resolution if you persist.”
THE NATION
