FAAN to begin revenue collection at MMA2 after 20 years — Keyamo

The Minister of Aviation and Aerospace Development, Festus Keyamo, has disclosed that the Federal Airports Authority of Nigeria (FAAN) will commence revenue collection at the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos following the resolution of a 20-year dispute with the concessionaire.

Speaking in Abuja during the signing of a settlement agreement with the concessionaire, Bi-Courtney Aviation Services Limited (BASL), the minister explained that the dispute between FAAN, the Federal Government and Bi-Courtney had prevented the authority from collecting revenue from the terminal for more than two decades.

The long-standing dispute between the Federal Government and Bi-Courtney Aviation Services Limited began between 2003 and 2005 over the scope of the company’s Design-Build-Operate-Transfer (DBOT) concession for MMA2 in Lagos, following a fire that destroyed the old domestic terminal in 2005.

In 2013, FAAN terminated leases granted to Bi-Courtney, citing contractual breaches. The matter subsequently became the subject of prolonged litigation, which eventually led to a Supreme Court judgment awarding Bi-Courtney N132 billion in damages.

Speaking further on the settlement, Keyamo said: “We are all gathered here to give effect to an approval granted by the Federal Executive Council (FEC), where Mr President approved the framework for the final resolution of the long-standing dispute between the Federal Government and Bi-Courtney Limited.

“I consider it a privilege to have led the efforts to bring the parties to this historic 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.”

The minister explained that, upon execution of the agreement, Bi-Courtney would waive all outstanding claims against the government that had not yet been settled, whether financial or otherwise. He added that FAAN and the Federal Government would also make concessions under the agreement.

Keyamo said the settlement provides for the release of historical claims against the concessionaire, including accumulated concession fees and specified ancillary payments arising before the agreement’s execution.

“The public should therefore understand that this is a reciprocal settlement. Both sides have agreed to surrender claims so that the relationship can proceed on defined terms,” he said.

He further explained that the settlement of past disputes was accompanied by clear obligations for the future.

“Upon execution, the concessionaire is to commence payment of the concession fees due under the original agreement. FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes.

“Today, FAAN begins to earn its money from MMA2. The parties must administer the new arrangements in a way that ensures that the amounts due are properly accounted for and paid,” the minister stated.

Keyamo noted that protecting passengers and ensuring the smooth operation of the airport remained essential under the agreement. He said the government and relevant regulatory bodies would retain the oversight responsibilities recognised in the settlement, including provisions relating to security access, emergencies and the maintenance of operational standards.

Speaking on behalf of Bi-Courtney Aviation Services Limited, Wale Babalakin said the dispute had remained unresolved for more than 18 years despite the facts and issues remaining unchanged.

“The facts are the same, the issues are the same, yet it remained unresolved until President Bola Ahmed Tinubu, through his minister, Mr Festus Keyamo, found a solution to this issue. We are very grateful,” he said.

Babalakin also thanked Nigerians, noting that the settlement would benefit the wider economy rather than the company alone.

“This is not a gain for us alone. It is going to unleash a number of quality jobs into the system immediately. I mean quality jobs. These are jobs that pay very well. It’s also going to improve the facade of the airport significantly, because the abandoned projects were an eyesore.

“Furthermore, it’s going to encourage a lot of people who feel daunted and discouraged when they have issues with government, that there is a possibility of resolution if one persists,” he stated.