The Federal Government and Bi-Courtney Limited have resolved their 18-year dispute over the Murtala Muhammed Airport Terminal Two (MMA2), Lagos, paving the way for the resumption of concession fee payments and the completion of abandoned hotel and conference centre projects near the airport.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Tuesday during the formalisation of a settlement agreement involving the Federal Government, the Federal Airports Authority of Nigeria (FAAN), Bi-Courtney Limited and Stabilini Visinoni Limited.
Keyamo said the agreement followed sustained negotiations to resolve years of disagreements and multiple court cases over the concession, which had remained contentious across successive administrations.
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He disclosed that the Federal Executive Council (FEC), under President Bola Tinubu, approved the framework for the negotiated settlement on April 30, 2026.
Under the agreement, the parties will waive outstanding financial and other claims against one another, allowing them to move forward with clearly defined contractual obligations.
The minister said Bi-Courtney would resume payment of concession fees due to FAAN under the original agreement, ending years of disputes over payments to the airport authority.
“FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from this settlement,” Keyamo said.
He said the agreement also addressed the dispute over the General Aviation Terminal (GAT), popularly known as the old domestic terminal, which remains the property of the Federal Government and is operated by FAAN.
According to him, Bi-Courtney has relinquished its exclusive rights under the original concession agreement, while the Federal Government has agreed to allow the company to expand its apron and accommodate regional flights within Africa, subject to the terminal’s full capacity.
Keyamo explained that the settlement also covered the four-star hotel and conference centre near the airport, with the parties agreeing to restore relevant rights and execute separate lease agreements outlining their respective obligations.
He added that the government and relevant regulatory authorities would retain oversight of security, emergency response, airport operations and maintenance standards.
The minister said the resolution would enable the government to generate revenue from the concession, provide greater investment certainty for Bi-Courtney and create opportunities for employment and commercial activities in the aviation sector.
He described the settlement as a significant achievement for the Tinubu administration, noting that the parties had chosen negotiations over prolonged litigation.
“What years of litigation could not deliver, constructive engagement has now made possible,” he said.
Tracing the origins of the dispute, Keyamo said the Federal Government entered into a concession agreement with Bi-Courtney and Stabilini Visinoni Limited on April 24, 2003, for the design, construction, operation and eventual transfer of MMA2.
The project was conceived as a replacement for a domestic terminal damaged by fire in 2000 and was intended to provide improved facilities for Nigeria’s expanding aviation market.
The concession initially covered a 12-year period beginning on May 7, 2007, but was subsequently extended to 36 years.
However, disagreements over financial claims, concession benefits and ownership of airport assets led to multiple legal battles, some of which reached the Supreme Court.
A separate dispute emerged over the hotel and conference centre after FAAN terminated their leases on April 19, 2012, citing alleged failure to fulfil construction obligations. Bi-Courtney subsequently challenged the termination in court.
Keyamo said he initiated negotiations with Bi-Courtney’s chairman, Dr Wale Babalakin, SAN, after assuming office, with both sides deploying their legal, commercial and technical teams to work towards a resolution.
He said the discussions were guided by the recognition that the national interest should take precedence over prolonged disagreements.
The minister, however, urged Bi-Courtney to fulfil its commitment to completing the abandoned hotel and conference centre, describing the unfinished structures as an eyesore that had remained near the airport for almost two decades.
He said FAAN and Bi-Courtney must meet their respective obligations under the settlement, adding that Nigerians would expect tangible improvements following the agreement.
In his remarks, Babalakin thanked President Tinubu and Keyamo for facilitating the resolution, saying the agreement would create well-paying jobs and improve the appearance of the airport environment.
He said the settlement demonstrated that disputes between private investors and government could be resolved through sustained engagement rather than prolonged litigation.
Babalakin assured the Federal Government and Nigerians that Bi-Courtney would fulfil its obligations under the agreement.
