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Federal Government and Bi-Courtney have reached a comprehensive settlement ending a 20-year legal and financial dispute over the Murtala Muhammed Airport Terminal Two (MMA2), clearing the way for FAAN to begin earning revenue from the facility.
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Bi-Courtney has written off a N132 billion judgment debt and interest claim against the government, while FAAN waived historically accrued concession fees as part of the reciprocal settlement approved by the Federal Executive Council.
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The deal settles disputes over exclusivity provisions, MM1 and associated airport projects, while allowing MMA2 to expand its apron and accommodate regional African flights, subject to capacity.
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Keyamo also disclosed plans for an aircraft leasing company backed by international investors to ease fleet shortages, strengthen Nigerian airlines and create high-quality aviation jobs.
October 20, (THEWILL) – The Federal Government and Bi-Courtney Aviation Services Limited have reached a comprehensive settlement ending a two-decade legal and financial dispute over the Murtala Muhammed Airport Terminal Two (MMA2), Lagos, clearing the way for the Federal Airports Authority of Nigeria (FAAN) to begin earning revenue from the privately operated terminal.
Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, announced the breakthrough on Tuesday, saying the settlement brings an end to years of litigation and competing financial claims involving MMA2, the General Aviation Terminal (GAT), concession fees and the abandoned airport hotel and conference centre projects.
A major part of the settlement involves Bi-Courtney writing off a N132 billion judgment debt and interest claim against the Federal Government, while FAAN, on its part, waived historically accrued concession fees and related claims arising before the settlement.
The agreement also removes disputed exclusivity provisions and restores specified concessions, establishing fresh financial and operational obligations under which FAAN will begin receiving statutory earnings from MMA2.
Keyamo said FAAN had effectively been locked out of concession revenue from the terminal for about 20 years because of the protracted dispute.
“FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from that settlement,” he said.
The settlement framework was approved by the Federal Executive Council on April 30, 2026, under the administration of President Bola Tinubu.
Keyamo described the agreement as evidence that complex commercial disputes involving government and private investors could be resolved through constructive negotiations rather than being allowed to remain trapped in litigation.
He said the resolution also demonstrated the government’s recognition of the importance of private capital in developing and maintaining critical public infrastructure.
Bi-Courtney Drops N132bn Claim
Under the settlement, Bi-Courtney completely waived the N132 billion judgment debt and interest claim against the Federal Government.
In exchange, the government and FAAN relinquished specified historical claims against the concessionaire, including accumulated concession fees predating the settlement.
The reciprocal waivers effectively draw a line under the financial claims accumulated during the prolonged dispute and establish a new starting point for the relationship between FAAN and the MMA2 concessionaire.
Keyamo said the arrangement would enable FAAN to begin earning revenue from the terminal going forward, ending a situation in which the agency received no concession fees for nearly two decades.
The agreement also establishes a framework governing MMA2’s continued operations and the financial obligations of the parties.
FG Retains MM1, MMA2 Gets Regional Flight Expansion
Another major component of the settlement resolves the dispute over the General Aviation Terminal, popularly known as the old domestic terminal or MM1.
Under the agreement, MM1 is recognised as property of the Federal Government and will continue to be operated by FAAN.
In return, Bi-Courtney will be permitted to expand the apron at MMA2 and accommodate regional flights within Africa, subject to the terminal’s capacity and applicable aviation requirements.
The concession potentially expands MMA2 beyond its predominantly domestic operations and could position the terminal to handle more regional traffic.
The settlement also addresses the long-running dispute surrounding the proposed four-star airport hotel and conference centre, whose unfinished structures have remained near the Lagos airport for years.
Keyamo challenged Bi-Courtney Chairman, Wale Babalakin, SAN, to ensure the projects are completed, describing their continued abandonment as an eyesore.
“Everybody drives through there every day, so I am saying it before the camera: anytime you are driving through, look whether Babalakin is building that place and raise the alarm and call me if I am not there,” the minister said.
He said completing the facilities would improve the airport environment, stimulate commercial activities and create employment opportunities.
How MMA2 Dispute Began
The dispute has its roots in the Federal Government’s decision to replace the old domestic terminal at the Murtala Muhammed Airport following its destruction by fire in the early 2000s.
The government subsequently entered into a concession arrangement with private investors for the design, construction, operation, and eventual transfer of a new domestic terminal.
The concession agreement involving Bi-Courtney and Stabilini Visinoni Limited was signed in April 2003, while MMA2 commenced operations in May 2007.
The arrangement initially provided for a 12-year concession period commencing on May 7, 2007, but the tenure was subsequently extended to 36 years.
However, disagreements emerged over the interpretation of the concession, financial entitlements, exclusivity provisions, concession payments, terminal operations and ownership or control of related airport facilities.
The disputes triggered years of litigation, with aspects of the cases eventually reaching the Supreme Court.
The legal battles also resulted in substantial competing financial claims, including the N132 billion judgment debt and interest claim now waived by Bi-Courtney under the settlement.
A separate dispute developed over leases covering the proposed airport hotel and conference centre.
FAAN terminated the leases in April 2012, alleging that construction obligations had not been fulfilled. Bi-Courtney challenged the action in court, adding another layer to the prolonged disagreement between the parties.
Successive efforts to resolve the disputes failed until negotiations under the Tinubu administration produced the settlement approved by FEC.
Keyamo said the government did not engage an external lawyer for the negotiations, explaining that the parties relied on their respective legal, commercial and technical teams to reach the agreement.
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Babalakin Hails Deal, Says Investment Will Follow
Babalakin described the settlement as an act of patriotism by the parties after years of unresolved disagreements.
He commended Tinubu and Keyamo for facilitating the resolution, noting that the dispute had remained unresolved for more than 18 years despite the issues being well known to both sides.
According to him, the settlement is expected to unlock investment, create well-paying jobs, improve government revenue and enhance the appearance and commercial environment around the Lagos airport.
He said resolving the disagreement could also strengthen confidence among investors and travellers and encourage private investors embroiled in disputes with government agencies to consider negotiated settlements instead of prolonged litigation.
FG Moves to Establish Aircraft Leasing Company
Keyamo also disclosed a separate aviation initiative to establish an aircraft leasing company with the backing of international investors as part of efforts to address fleet constraints confronting Nigerian airlines.
Access to aircraft and competitive financing has remained a major challenge for domestic operators, limiting their ability to expand operations and compete effectively with foreign carriers.
The proposed leasing company is expected to improve access to aircraft for Nigerian airlines and strengthen their capacity to compete for domestic, regional and international traffic.
Keyamo said the government’s broader aviation reforms, including collaboration with private and international investors, were designed to modernise airport infrastructure, create high-quality jobs and enable Nigerian carriers to reclaim market share from foreign airlines.
For FAAN, however, the MMA2 settlement immediately removes a major financial obstacle that had persisted for about two decades.
With historical claims on both sides waived and new financial obligations established, the airport authority is now positioned to begin receiving statutory earnings from MMA2, closing one of the longest-running public-private concession disputes in Nigeria’s aviation sector.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
