FG, BASL reach truce after 18-year concession dispute

The Federal Government and Bi-Courtney Aviation Services Limited (BASL) have reached an amicable settlement over the long-standing disputes surrounding the concession agreement for Murtala Muhammed Airport Terminal Two (MMA2), paving the way for the commencement of regional flights from the terminal.

The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, announced the landmark resolution in Abuja on Tuesday, which brings an end to more than 18 years of legal battles and disagreements between the Federal Government and the private concessionaire.

The agreement is expected to strengthen the public-private partnership arrangement at MMA2, improve airport infrastructure, create employment opportunities and restore investor confidence in Nigeria’s aviation sector.

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Under the terms of the settlement, both parties have agreed to waive historical claims against each other and establish a framework for meeting their respective obligations going forward.

A major component of the agreement is the commencement of concession fee payments to the Federal Airports Authority of Nigeria (FAAN) by BASL under the original concession arrangement.

The development marks a significant milestone in the relationship between the government and the terminal operator, as FAAN is expected to begin receiving concession fees after nearly two decades of disputes over the agreement.

The settlement also clarifies the ownership and operational status of the General Aviation Terminal (GAT), which has been formally recognised as the property of the Federal Government and placed under the operation of FAAN.

The clarification resolves one of the major areas of contention between the parties and is expected to provide greater certainty regarding the management of aviation infrastructure within the Murtala Muhammed Airport complex.

In another significant development, BASL will be permitted to expand its apron facilities and commence regional flight operations from MMA2 across Africa, up to the terminal’s full operational capacity.

The planned regional operations are expected to expand the terminal’s role in Nigeria’s air transport network, providing additional opportunities for airlines and passengers while strengthening connectivity between Lagos and other African destinations.

The expansion of apron facilities is also expected to improve the terminal’s capacity to accommodate increased flight operations and support the development of additional aviation-related services.

Clarifying all issues during the announcement, Keyamo said the agreement removes the concessionaire’s exclusive rights under Article 2 of the original concession. It also expressly recognises the General Aviation Terminal (GAT) as belonging to the Federal Government and being operated by the Federal Airports Authority of Nigeria (FAAN).

According to the minister, this resolves a major point of disagreement and gives the government room to plan future airport developments within the revised contractual framework.

“The other important feature is the waiver of the concessionaire’s exclusive rights under Article 2 of the original concession agreement.

“The agreement explicitly recognises that GAT belongs to the Federal Government and is operated by FAAN. This removes the central point of conflict and allows the government to plan future developments within the revised contractual framework.

“In return, the Federal Government has agreed to allow Bi-Courtney to expand its apron and accommodate regional flights within Africa at MM2, to the extent of the terminal’s full capacity.”

The arrangement could reshape how airport facilities and traffic are allocated between the government and the concessionaire. Nevertheless, the practical impact will depend on the approved scope of expansion, operational capacity and applicable regulatory requirements.

On claims, Keyamo said, “On the other hand, the Federal Government has also made concessions. The agreement provides for the release of historical claims against the concessionaire, including accumulated concession fees and specified ancillary payments arising before the agreement was executed.

“The public should understand that this is a reciprocal settlement. Both parties have agreed to surrender certain claims so that their relationship can proceed on clearly defined terms.

“However, settling past claims comes with clear obligations for the future. Upon execution of the agreement, the concessionaire is to commence payment of the concession fees due under the original agreements.

“FAAN has not earned a kobo from MM2 for the last 20 years because of these disputes. Today, FAAN begins to earn its money back.”

In response, BASL, led by its Chairman, Dr. Wale Babalakin, SAN, expressed gratitude to President Bola Ahmed Tinubu for resolving the longstanding disagreement through the aviation ministry.

Babalakin said the dispute had persisted for more than 18 years despite the facts and issues remaining substantially unchanged. He credited the president’s intervention through the minister with helping the parties find a solution.

“We have found a solution to this issue,” Babalakin said, expressing appreciation to the president and thanking Nigerians.

He argued that the settlement would unlock quality employment opportunities, particularly jobs offering attractive remuneration. He also anticipated improvements to the airport’s appearance and renewed progress on abandoned projects.

Babalakin further said the compromise deal could encourage people who feel discouraged when disputes arise with government.