The Federal Government has reached a landmark settlement with Bi-Courtney Aviation Services Limited, bringing to an end a nearly two-decade dispute over the concession of the Murtala Muhammed Airport Terminal Two (MM2) in Lagos.
Minister of Aviation and Aerospace Development, Festus Keyamo, announced that the Federal Executive Council (FEC), chaired by President Bola Tinubu, approved the settlement agreement following more than a year of negotiations aimed at resolving one of Nigeria’s longest-running aviation concession disputes.
According to Keyamo, the agreement represents a significant compromise by both parties and is expected to unlock fresh investments, improve airport infrastructure and restore government revenue that had been tied up in years of litigation.
As part of the settlement, Bi-Courtney agreed to write off the N132 billion in court-awarded damages previously granted against the Federal Government.
The company also agreed to relinquish its claim to the Murtala Muhammed Airport Terminal One (MM1), the old domestic terminal, which the Supreme Court had earlier ruled should be handed over to it.
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In addition, Bi-Courtney surrendered its court-affirmed exclusive right to operate any private or domestic airport in and around Lagos State, a move expected to provide greater flexibility for future airport development and concessions.
The concessionaire also committed to commencing payment of concession fees due under the original concession agreement signed on April 24, 2003, once the settlement agreement is formally executed. The minister noted that the prolonged dispute had prevented both the Federal Government and Bi-Courtney from receiving their respective financial benefits under the concession for almost 20 years.
In return, the Federal Government agreed to waive all outstanding concession fees owed by Bi-Courtney since the concession agreement was signed, acknowledging that the dispute had stalled implementation of the agreement for nearly two decades.
The government also agreed to restore ownership of the unfinished airport hotel and conference centre located opposite the terminal, reversing an earlier revocation. Under the agreement, Bi-Courtney is expected to complete and commence operation of the facility within 24 months, with the Federal Government entitled to a share of the revenue generated.
Another key aspect of the settlement is the government’s commitment to relocate regional flight operations to MM2, subject to the terminal’s operational capacity. Although the move had received previous approval, it had not been implemented for several years.
To support future expansion, the Federal Government also agreed to allocate additional land to Bi-Courtney to expand the terminal’s aircraft apron, enabling it to accommodate more aircraft and increase operational capacity.
Keyamo described the agreement as a major breakthrough for Nigeria’s aviation sector, saying it resolves a dispute that had constrained investment, delayed infrastructure development and deprived both parties of substantial revenue for nearly two decades.
Industry stakeholders are expected to closely monitor the implementation of the agreement, particularly the planned transfer of regional flights, expansion of apron facilities and completion of the airport hotel project, all of which could significantly enhance operations at MM2 and strengthen Lagos’ position as Nigeria’s leading aviation hub.
