The Federal Airports Authority of Nigeria has begun earning revenue from the Murtala Muhammed Airport Terminal 2 following the resolution of its nearly two-decade dispute with Bi-Courtney Aviation Services Limited.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Tuesday during the formalisation of the settlement agreement between the Federal Government, FAAN and Bi-Courtney, following the approval of the framework by the Federal Executive Council under President Bola Tinubu’s administration.
“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 minister assured.
The settlement covers the concession agreement for the domestic terminal, MMA2, as well as related leases for the four-star hotel and conference centre near the airport, whose abandoned structures have remained an eyesore for nearly 20 years.
Keyamo described the agreement as a historic development for Nigeria’s aviation sector, saying it followed sustained engagement and difficult negotiations between the government and the concessionaire.
“Let me state clearly at the outset that this resolution was achieved under the administration of President Bola Tinubu. On the 30th of April 2026, the Federal Executive Council, under the leadership of His Excellency, approved the terms of the negotiated settlement,” he said.
Keyamo added that the agreement would enable both parties to move beyond years of litigation and pursue their respective obligations under a revised contractual framework.
The minister said the dispute originated from the concession agreement signed on April 24, 2003, between the FG, acting through the relevant aviation institutions, Bi-Courtney Limited and Stabilini Visinoni Limited for the design, construction, operation and eventual transfer of the domestic terminal.
The agreement was initially for 12 years, commencing on May 7, 2007, but was subsequently extended to 36 years.
Over time, disagreements over financial claims and contractual obligations triggered several court cases across successive administrations.
Bi-Courtney maintained that it had been denied benefits promised under the concession, while FAAN asserted its own financial entitlements and responsibility to protect public airport assets.
The dispute also extended to the ownership of the General Aviation Terminal, known as MMA1, and financial claims involving the Asset Management Corporation of Nigeria.
According to Keyamo, the Supreme Court affirmed that the General Aviation Terminal, also called the Old Domestic Airport, should be handed over to Bi-Courtney Limited.
However, under the new settlement, the General Aviation Terminal will remain the property of the FG, and will be operated by FAAN.
“The agreement explicitly recognises GAT as belonging to the federal government and being operated by FAAN. This removes a central point of conflict and allows government to plan airport development within the revised contractual framework,” he said.
As compensation, the minister said the FG had agreed to allow Bi-Courtney to expand its apron and move regional flights within Africa to MMA2, subject to the terminal’s full capacity.
Keyamo explained that the agreement provides for reciprocal waivers of outstanding claims by both parties, including historical financial claims and specified ancillary payments.
“The first major feature is the settlement of the historical claims. Upon execution, Bi-Courtney waives all outstanding claims against the government not yet settled, financial or otherwise. FAAN, on the other hand, and the federal government also make concessions as of today.”
He said the government’s concessions included the release of historical claims against the concessionaire, including accumulated concession fees and specified ancillary payments arising before the execution of the agreement.
The minister stressed that the arrangement was not a one-sided concession but a mutual settlement intended to establish clearer obligations for both parties.
“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.”
Beyond resolving past claims, Keyamo said the agreement would restore regular payments of concession fees to FAAN under the original agreement.
He added that the government would retain regulatory oversight over security, access, emergencies and maintenance standards, while the parties would work together to ensure compliance with the revised arrangements.
The settlement also addresses the four-star hotel and conference centre through restored rights and separate lease agreements.
FAAN and Bi-Courtney had executed separate leases for the facilities on February 2, 2007. However, FAAN terminated the leases on April 19, 2012, alleging that the construction obligations had not been fulfilled.
Bi-Courtney subsequently challenged the termination in court.
Keyamo said the resolution followed President Tinubu’s directive and negotiations between the ministry and the chairman of the Bi-Courtney Group, Dr Wale Babalakin.
“Under President Tinubu’s directive, when we came on board, I, as Minister of Aviation and Aerospace Development, initiated and pursued and negotiated a settlement with the alter ego of Bi-Courtney Ltd. and Stabilini Visnoni Ltd., which is Dr. Wale Babalakin, S.A.N. We both sat down as members, which brought all our legal prowess to bear on so many of the complicated and seemingly intractable issues.”
He said the negotiations involved legal, commercial, and technical teams from both sides and eventually produced an agreement despite the complexity of the dispute.
“As I said, when we started it off, we thought it was completely intractable, Wale Babalakin and I. But we were patriots in the first instance before we even looked at our dispute. We thought that Nigeria was bigger than all of us.”
The minister added that both parties made concessions to settle.
“He was actually very generous and the federal government was also generous in different respects too and helped us to look at the issues dispassionately. So for me, the federal government had three for the price of one.”
Keyamo said the settlement would provide the government with renewed revenue, give the concessionaire greater investment certainty and create opportunities for employment and commercial activities in the aviation sector.
He urged FAAN and Bi-Courtney to ensure that the agreement translated into completed facilities, reliable services and improved airport operations.
“The travelling public should see the result in functioning facilities and dependable service. That is how the value of this settlement will be measured.”
The minister also commended Babalakin and the companies involved for accepting a negotiated resolution despite having obtained a favourable judgment.
“I particularly commend Dr Wale Babalakin and Bi-Courtney Ltd., Stabilini Visnoni Ltd. and the advisors for embracing a negotiated resolution despite having a judgement favourable to them. This is statesmanship in action, recognising that the greatest victory is not always in prolonging a dispute but in creating the conditions for lasting progress.”
Meanwhile, Babalakin said the dispute had remained unresolved for more than 18 years, even as the issues stayed largely unchanged until the Tinubu administration intervened.
“It’s been on for over 18 years. The facts are the same, the issues are the same, yet it remained unresolved until President Bola Tinubu, through his minister, Mr Festus Keyamo, found a solution to this issue. We are very grateful.”
He said the settlement would create well-paying jobs and improve the airport’s appearance by completing previously abandoned projects.
“We also want to thank all Nigerians. This is not a game for us alone. It is going to unleash several 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.”