The Federal Government and Bi-Courtney Limited have formally ended their nearly 20-year dispute over the Murtala Muhammed Airport Terminal Two (MM2) in Lagos, following the signing of settlement agreements covering the airport and an uncompleted hotel and conference centre opposite the facility.
The Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, disclosed this on Tuesday, October 20, 2026, during the formal signing of the agreements involving the Federal Government, the Federal Airports Authority of Nigeria (FAAN), Bi-Courtney Limited and Stabilini Visinoni Limited.
The signing followed the approval granted by the Federal Executive Council (FEC) on April 30, 2026, for a negotiated settlement aimed at resolving longstanding legal disputes between the parties, including claims and counterclaims that had reached the Supreme Court.
Keyamo confirms settlement of MM2 dispute
Keyamo explained that efforts to resolve the dispute began about two years ago under President Bola Tinubu’s directive, leading to sustained negotiations with Bi-Courtney’s chairman, Dr Wale Babalakin, over several complicated legal and commercial disagreements.
According to the minister, the negotiations eventually produced a settlement that would allow the Federal Government to begin receiving its share of revenue from MM2 for the first time in nearly two decades, while paving the way for the airport to accommodate regional flights within Africa.
- “Today, I was pleased to formally sign the settlement agreements between the Federal Government of Nigeria, the Federal Airports Authority of Nigeria, Bi-Courtney Limited and Stabilini Visinoni Limited over the nearly 20-year disputes involving MM2 domestic airport and the uncompleted hotel and conference centre opposite the airport,” Keyamo stated.
The signing ceremony was attended by directors of the Ministry of Aviation and Aerospace Development, the Managing Director of FAAN, the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), and other ministry officials.
Bi-Courtney Limited was represented by Babalakin and members of his team.
The agreement formally concludes the longstanding dispute over MM2 and the uncompleted hotel and conference centre, while providing a framework for revenue sharing and regional flight operations.
Bi-Courtney waives N132 billion damages
The settlement follows an earlier announcement by Keyamo on May 1, 2026, detailing the concessions agreed upon by both parties after the Federal Executive Council approved the resolution of the dispute.
The terms cover outstanding financial obligations, operational rights, airport expansion and the completion of the hotel and conference centre project.
- Bi-Courtney agreed to waive the N132 billion court-awarded damages against the Federal Government and relinquish its claim to the old domestic terminal at Murtala Muhammed Airport, which the Supreme Court had ordered to be handed over to the company.
- The company also surrendered its exclusive rights to operate private or domestic airports in and around Lagos State and agreed to commence payment of concession fees under the agreement dated April 24, 2003, once the settlement was executed.
- In return, the Federal Government agreed to write off outstanding concession fees accumulated during the dispute and restore the previously revoked hotel and conference centre project to Bi-Courtney for completion and operation within 24 months, subject to revenue-sharing arrangements.
The government also agreed to permit regional flight operations at MM2, subject to the terminal’s capacity, and provide additional land for apron expansion to accommodate more aircraft.
The concessions are expected to restore government revenue from the airport while creating opportunities for increased commercial activities and infrastructure development at the terminal.
How MM2 concession dispute began
Bi-Courtney Aviation Services Limited (BASL), a subsidiary of the Bi-Courtney Group chaired by Wale Babalakin, operates MM2 under a Design-Build-Operate-Transfer concession agreement awarded by the Federal Government in 2003.
The terminal commenced operations in 2007, becoming Nigeria’s first privately concessioned airport terminal and marking a significant development in private-sector participation in the country’s aviation infrastructure.
- The concession subsequently became the subject of prolonged disagreements over contractual obligations, revenue entitlements and operational rights.
- In July 2021, Nairametrics reported that Bi-Courtney accused FAAN of owing it over N200 billion in lost earnings, disputing claims by the then Minister of Aviation, Hadi Sirika, that the company owed the government approximately N13 billion.
- In June 2026, Nairametrics also reported that the Federal Government was planning to extend rail connectivity from Ikeja to the Murtala Muhammed International Airport, General Aviation Terminal and MM2 to improve passenger movement and accessibility.
The longstanding disagreements had affected the relationship between the Federal Government and Bi-Courtney, particularly over the concession’s financial and operational obligations.