Nigerian Government, the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited have reached an amicable settlement to resolve a dispute spanning more than 18 years over the concession of Murtala Muhammed Airport Terminal 2 (MM2) in Lagos.
The Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, CON, announced the settlement, describing it as a major step towards ending years of legal battles and establishing a framework for improved airport operations, infrastructure development and private-sector investment.
Under the agreement, both parties have agreed to waive historical claims and establish clearer terms for their respective obligations going forward. A key outcome is that FAAN will begin receiving concession fees due under the original agreement, marking a significant development in the long-running relationship between the airport authority and Bi-Courtney. The settlement also clarifies ownership and operational responsibility for the General Aviation Terminal (GAT), which is recognised as belonging to the Federal Government and operated by FAAN. The issue had been one of the major points of contention between the parties.
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Another significant provision allows Bi-Courtney to expand the apron at MM2 and operate regional flights across Africa, up to the terminal’s full capacity. The development could strengthen Lagos’ role as a regional aviation hub while creating additional opportunities for airlines, passengers and businesses operating within the airport ecosystem. The expansion is also expected to support improved passenger handling, increased flight activity and more efficient use of existing airport infrastructure.
For Bi-Courtney, the agreement provides greater clarity on its concession rights and operational responsibilities, creating a more predictable environment for future investment. For the government and FAAN, the settlement offers a pathway to concession revenue while clarifying public ownership and management responsibilities. The resolution is expected to support job creation, infrastructure modernisation and improved investor confidence in Nigeria’s public-private partnership framework, particularly in the aviation sector, where concession arrangements can play an important role in financing and managing airport facilities.
The MM2 concession has been a prominent example of the challenges that can arise when government agencies and private operators disagree over contractual obligations, revenue arrangements and infrastructure responsibilities. The latest settlement signals a move towards cooperation after years of litigation and disagreement. Its long-term impact will depend on the implementation of the agreed terms, the delivery of planned infrastructure improvements and the ability of both parties to maintain a stable working relationship.
With regional flight operations and apron expansion now included in the settlement framework, MM2 could play a larger role in supporting regional connectivity, passenger traffic and the growth of Nigeria’s aviation market.
