FG, Bi-Courtney finally end disputed MMA2 concession agreement

The two-decade old dispute over the Murtala Mohammed Airport Terminal 2 (MMA) concession has finally ended with the signing of a landmark settlement agreement by the Federal Government, Bi-Courtney Aviation Services Limited (BASL) and the Federal Airports Authority of Nigeria (FAAN) in Abuja.

The dispute arose from the misunderstanding over the management of the 2003 Build, Operate and Transfer concession of MMA2 which Bi-Courtney developed and operated after the old domestic terminal was destroyed by fire in 2005.

The agreement follows the Federal Executive Council’s approval of a comprehensive settlement framework presented by the Minister of Aviation and Aerospace Development, Mr Festus Keyamo.

Under the deal, Bi-Courtney agreed to write off a N132 billion judgment debt and accrued interest claimed from the Federal Government. The company also relinquished its claim over Murtala Muhammed Airport Terminal One, which will remain under Federal Government control, and abandoned its claim to exclusive rights over private or domestic airport operations in and around Lagos.

In return, the Federal Government agreed to write off concession fees that accrued but were unpaid during the years of litigation. Bi-Courtney will, however, begin paying all concession fees due under the 2003 agreement from the date the settlement takes effect.

The government also restored the long-abandoned hotel and conference centre project opposite MMA2 to Bi-Courtney. The company is expected to complete and operate the facility within 24 months, while the Federal Government will receive a share of the revenue.

The settlement now creates a new revenue framework for MMA2, with the Federal Government now expected to earn income from the terminal’s operations. It also clarifies FAAN’s statutory earnings and establishes operational terms for the terminal.

Additional measures include the relocation of regional flight operations to MMA2, subject to available capacity, and the allocation of more land to expand the terminal apron for increased aircraft movements.

Keyamo described the settlement as a breakthrough that demonstrates the value of private investment in public infrastructure and the importance of dialogue in resolving complex disputes. He said the agreement would support job creation, airport modernisation and renewed confidence in Nigeria’s aviation sector.

Bi-Courtney Chairman, Dr Wale Babalakin (SAN), said the resolution reflected patriotism by both parties and would improve government revenue, create employment and strengthen investor confidence.

FAAN Managing Director, Mrs Olubunmi Kuku, said the settlement would boost investor confidence in public-private partnership projects across the aviation industry.

The agreement is expected to unlock fresh investment in MMA2, improve passenger and airline operations, revive the hotel and conference-centre project, and provide a clearer commercial framework for future aviation concessions.

It also removes a major legal uncertainty that had constrained one of Nigeria’s busiest domestic airport terminals for about 20 years.