The Federal Airports Authority of Nigeria (FAAN) has started earning money from the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos. This comes after a settlement between the Federal Government and Bi-Courtney Aviation Services Limited ended a dispute that lasted almost 20 years.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced this on Tuesday. He spoke during the formal signing of the settlement involving FAAN, Bi-Courtney, Stabilini Visinoni Limited, and the Federal Government.
“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,” Mr Keyamo said.
The agreement allows FAAN to start receiving concession fee payments again. In return, both sides will drop certain historical financial claims against each other.
Mr Keyamo mentioned that the Federal Executive Council (FEC) approved the settlement framework on 30 April 2026. This was after talks aimed at solving the long-standing issues.
What the Settlement Changes
Under the new agreement, Bi-Courtney has agreed to drop its claims against the Federal Government. The government and FAAN will also waive some claims against Bi-Courtney. This includes past concession fees and other payments before the agreement.
The minister explained that this arrangement aims to clear up past misunderstandings and set clear responsibilities for both parties moving forward.
The settlement also solves a disagreement about the General Aviation Terminal (GAT), also known as the Old Domestic Airport. Mr Keyamo stated that the new agreement recognizes the terminal as Federal Government property. FAAN will operate it.
The government has decided to let Bi-Courtney expand its apron to handle regional flights in Africa at MMA2, depending on the terminal’s capacity. The agreement also restores rights and includes separate leases for a four-star hotel and conference centre near the airport, which have been unfinished for years.
Mr Keyamo said the government will keep regulatory control over security, access, emergencies, and maintenance standards. Both sides will work together to carry out the new arrangements.
Background to the Dispute
In April, PREMIUM TIMES reported that the Federal Government had reached a settlement with Bi-Courtney to end the long-running dispute over MMA2. This followed years of lawsuits and arguments about the airport’s concession.
Mr Keyamo had said that the FEC approved the negotiated settlement, which involved concessions from both sides, updated operational plans, and a way to bring back government revenue from the terminal.
This dispute started from a concession agreement signed on 24 April 2003. The agreement involved the Federal Government, Bi-Courtney, and Stabilini Visinoni Limited to design, build, operate, and eventually transfer the domestic terminal.
It was supposed to last 12 years from 7 May 2007 but was later extended to 36 years. Arguments over contract duties, financial claims, and the concession’s scope caused multiple court cases over different governments.
Bi-Courtney claimed it was denied benefits under the concession, while FAAN said it had its own financial claims and responsibilities to protect public airport assets.
Mr Keyamo said the latest settlement resulted from negotiations between the government and Wale Babalakin, the chairman of the Bi-Courtney Group. Legal, commercial, and technical teams were part of the process.
He added that the agreement will give Bi-Courtney more confidence to invest in the terminal. It will also allow the government to start collecting revenue and plan airport development again.
He urged FAAN and Bi-Courtney to make sure the settlement leads to completed facilities, reliable services, and better 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,” he said.
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