The Federal Government and Bi-Courtney Aviation Services Limited have signed a final settlement agreement to resolve their nearly two-decade dispute over the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, paving the way for renewed government revenue and the completion of long-abandoned hotel and conference centre projects.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Tuesday in Abuja during the formal signing of the agreement, saying the resolution would enable the Federal Airports Authority of Nigeria (FAAN) to begin receiving concession fees from the terminal after years of legal disputes.
Keyamo said the settlement followed approval by the Federal Executive Council (FEC) and reflected President Bola Tinubu’s administration’s decision to resolve the longstanding disagreement through negotiations rather than prolonged litigation.
He described the agreement as a mutually beneficial arrangement under which both parties had agreed to relinquish outstanding claims against each other to establish a framework for cooperation and development.
Under the terms, Bi-Courtney will waive its outstanding claims against the Federal Government, while the government and FAAN will relinquish specified historical claims against the concessionaire, including accumulated concession fees and related payments arising before the agreement was executed.
The minister noted that FAAN had not received concession fees from MMA2 for about 20 years because of the dispute, adding that the settlement would restore the authority’s ability to generate revenue from the facility.
Keyamo also said the agreement had resolved a major disagreement concerning the General Aviation Terminal, MMA1, with the revised framework recognising the facility as the property of the Federal Government and placing its operations under FAAN.
In return, the government has agreed to allow Bi-Courtney to expand its apron facilities and accommodate regional flights within Africa at MMA2, subject to the terminal’s operational capacity.
The agreement further provides for separate lease arrangements covering a four-star hotel and conference centre situated opposite the airport terminal. The projects have remained incomplete for years, leaving their structures abandoned.
Keyamo urged Bi-Courtney to fulfil its construction obligations and complete the projects, noting that their completion would strengthen Nigeria’s aviation and hospitality sectors while improving the airport’s surrounding environment.
He assured that the ministry would work with FAAN and Bi-Courtney to ensure compliance with the agreement, particularly in areas relating to construction, concession payments, airport operations and the implementation of the agreed development programme.
The minister added that regulatory oversight, airport security, emergency response arrangements and maintenance standards would remain central to the revised contractual framework.
Recounting the history of the dispute, Keyamo said the original concession agreement was signed on April 24, 2003, for the design, construction, operation and eventual transfer of the domestic airport terminal.
The concession commenced on May 7, 2007, with an initial duration of 12 years, before it was subsequently extended to 36 years.
However, disagreements over financial entitlements, concession obligations and ownership-related issues led to multiple legal proceedings, some of which progressed to the Supreme Court.
According to Keyamo, sustained negotiations involving Bi-Courtney’s chairman, Dr Wale Babalakin, alongside the parties’ legal and technical teams, eventually produced the final settlement.
He also noted that the Federal Government secured the resolution without engaging external lawyers for the negotiations.
Speaking at the signing ceremony, Babalakin commended President Tinubu and Keyamo for facilitating the settlement of a dispute that had remained unresolved for more than 18 years despite the parties maintaining their respective positions.
He said the agreement would create employment opportunities, particularly through the completion of the abandoned hotel and conference centre projects, while enhancing the appearance of the airport environment.
Babalakin added that the resolution could encourage investors involved in disputes with government to consider negotiation as a practical alternative to prolonged litigation.
He assured the Federal Government, the aviation ministry and FAAN that Bi-Courtney would fulfil its obligations under the agreement.
