…FAAN to resume concession revenue, while agreement clears way for hotel, conference centre completion
The Federal Government and Bi-Courtney Aviation Services Limited have signed a final settlement agreement to resolve a nearly 20-year dispute over the concession of the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, paving the way for renewed revenue to the government and fresh investment in airport infrastructure.
Festus Keyamo, minister of aviation and aerospace development, disclosed this on Tuesday at the signing of the agreement, which formalises a negotiated resolution involving the Federal Government, the Federal Airports Authority of Nigeria (FAAN), Bi-Courtney and Stabilini Visinoni Limited.
Keyamo said the settlement followed approval by the Federal Executive Council on April 30, 2026, under President Bola Tinubu’s administration, after years of litigation and competing financial claims between the parties.
He described the agreement as a significant milestone for Nigeria’s aviation sector, saying it would replace prolonged legal disputes with defined financial and operational obligations.
The minister said the resolution was achieved through sustained negotiations involving the ministry, FAAN and the concessionaire, adding that both sides made concessions to reach an agreement.
“It required sustained engagement, difficult negotiations, and an unwavering commitment to securing an outcome beneficial to all parties, and above all beneficial to Nigeria as a country,” Keyamo said.
Under the settlement, Bi-Courtney will waive outstanding claims against the government, while FAAN and the Federal Government will release specified historical claims against the concessionaire, including accumulated concession fees and certain ancillary payments arising before the agreement’s execution.
Keyamo said the reciprocal arrangement was intended to settle past disputes and establish a clearer basis for the parties to fulfil their obligations going forward.
He disclosed that FAAN had not earned concession revenue from MMA2 for about 20 years because of the dispute, but would begin receiving payments under the revised arrangements.
“FAAN had not earned a kobo from MM2 for the last 20 years because of disputes. Today FAAN begins to earn its money from that settlement,” he said.
The agreement also addresses a longstanding disagreement over the General Aviation Terminal, commonly known as the old domestic airport or MMA1. Keyamo said the revised framework explicitly recognises the terminal as belonging to the Federal Government and being operated by FAAN, removing a major source of conflict between the parties.
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 full capacity.
The settlement also provides for restored rights and separate lease arrangements for a four-star hotel and conference centre located near the airport. The buildings have remained incomplete for years, becoming a visible reminder of the prolonged dispute.
Keyamo urged Bi-Courtney chairman Wale Babalakin to complete the facilities, saying their delivery would add to the airport’s commercial infrastructure and improve the surrounding environment.
“The travelling public should see the results in functioning facilities and dependable service,” the minister said.
He added that government and regulatory agencies would retain their oversight responsibilities under the agreement, including provisions relating to security, emergency response, access and maintenance standards.
The minister said the settlement would provide the government with renewed revenue, give the concessionaire greater investment certainty and create opportunities for employment and commercial activity in the aviation sector.
The dispute dates back to a concession agreement 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 beginning on May 7, 2007, was later extended to 36 years.
The parties subsequently developed competing claims over the concession’s financial terms, the terminal’s operations and the rights associated with other airport facilities. The disagreements led to multiple court proceedings, including cases that reached the Supreme Court.
There was also a separate dispute over the hotel and conference centre leases, which FAAN terminated in April 2012 over alleged failure to fulfil construction obligations. Bi-Courtney challenged the termination in court.
Babalakin, chairman of the Bi-Courtney Group, commended Tinubu and Keyamo for resolving the dispute, saying the issues had remained unresolved for more than 18 years despite the facts being known to both parties.
“We must thank President Bola Ahmed Tinubu for resolving this issue,” Babalakin said.
He said the agreement would unlock employment opportunities, improve the appearance of the airport environment and encourage investors who had become discouraged by prolonged disputes with government institutions.
“This is not a game for us alone. It is going to unleash a number of quality jobs into the system immediately. I mean quality jobs,” he said.
Babalakin pledged that Bi-Courtney would fulfil its obligations under the agreement, adding that the company would not disappoint the President, the aviation ministry, FAAN or the country.
The settlement now places responsibility on the parties to implement the agreed construction programme, meet financial obligations and complete the necessary legal and operational steps. Keyamo said the value of the agreement would ultimately be measured by completed facilities, improved airport services and sustained cooperation between FAAN and the concessionaire.
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