MMA2 at 18: Lessons from Nigeria’s First Privately Funded Airport Terminal.
Eighteen years after commercial operations began, the Murtala Muhammed Airport Terminal Two (MMA2) remains one of the most consequential infrastructure projects in Nigeria’s aviation history, a symbol of private sector capability, policy complexity and unrealised potential.
The flashback show it was officially inaugurated on April 7, 2007, by former President Olusegun Obasanjo, with commercial flight operations commencing on May 7, 2007, MMA2 marked a turning point as Nigeria’s first privately funded, built and operated airport terminal. Delivered under a Build-Operate-Transfer (BOT) concession, the terminal is operated by Bi-Courtney Aviation Services Limited and primarily serves domestic flights in Lagos.
From Crisis to a PPP Milestone
MMA2 was conceived following the devastating 2000 fire that destroyed the old domestic terminal at the Murtala Muhammed International Airport. With limited public funds available, the Federal Government turned to private investment, awarding Bi-Courtney the concession to design, finance, construct and operate a modern replacement.
The terminal’s completion and launch in 2007 redefined domestic air travel in Nigeria, introducing improved passenger processing, enhanced safety systems and structured commercial spaces that were largely absent in earlier facilities.
According to Celestine Ukpong, an economist, MMA2’s delivery remains a landmark in Nigeria’s infrastructure evolution.
“MMA2 demonstrated that private capital can successfully deliver and sustain complex public infrastructure in Nigeria. Its survival and relevance after 18 years show the viability of PPPs when the asset is properly structured and professionally managed,” Ukpong said.
Operational Success, Financial Headwinds
Over the years, MMA2 has grown into one of Nigeria’s busiest domestic terminals, handling millions of passengers annually and serving multiple domestic airlines. Its consistent traffic has made it a critical node in Lagos’ business and mobility ecosystem, supporting commerce, tourism and employment.
However, the terminal’s early years were marked by financial strain. Heavy capital expenditure, high operating costs and policy uncertainties resulted in a prolonged break-even period, with the terminal reportedly operating at a loss for several years after launch. The 2016 economic recession and the COVID-19 pandemic further tested its resilience.
Peter Adebayo, FCA, said these challenges highlight the realities of long-term infrastructure investment.
“Airport terminals are capital-intensive projects with long payback periods. What made MMA2’s journey tougher was regulatory uncertainty, which slowed revenue optimisation and delayed the full commercial potential of the asset,” he noted.
Despite these setbacks, MMA2 remained operational throughout the pandemic, implementing health and safety protocols that earned industry recognition. Post-pandemic recovery has since restored strong passenger volumes, reaffirming the terminal’s operational relevance.
The Unfinished Business of Regional Flights
Perhaps the most enduring low point in MMA2’s 18-year journey is the delay in launching regional flight operations. Bi-Courtney invested heavily in regional facilities from 2014, and by 2016, the terminal had been certified fit for regional services by a federal ministerial committee.
Nearly a decade later, those facilities remain largely unused.
Ukpong described the delay as a missed economic opportunity.
“Regional flights would significantly increase passenger throughput, create foreign exchange inflows and strengthen Lagos as a regional aviation hub. Keeping that capacity idle represents lost value for both the investor and the wider economy,” he said.
Adebayo added that the situation reflects broader governance challenges.
“Idle infrastructure is costly. The longer regulatory delays persist, the harder it becomes to optimise returns and justify further private investment in similar projects,” he warned.
Policy Frictions and Investor Confidence
MMA2 has also been shaped by recurring debates over concession terms and regulatory oversight. While Bi-Courtney maintains that its 36-year concession remains valid, prolonged policy frictions have at times clouded long-term planning and expansion.
For analysts, the terminal’s experience underscores the importance of regulatory clarity.
“If Nigeria wants to attract serious private investment into infrastructure, concession agreements must be respected and regulatory processes streamlined. MMA2 is a real-world test of that commitment,” Ukpong said.
Why MMA2 Still Matters
Beyond its role as a domestic terminal, MMA2 stands as a living case study in Nigeria’s PPP journey. It illustrates how private sector expertise can deliver critical infrastructure, while also exposing the risks posed by policy inconsistency and regulatory overlap.
At 18, MMA2 is both a success story and a cautionary tale, proof that infrastructure can endure, but also that governance ultimately determines how much value such assets generate.
As Nigeria looks to deepen private sector participation in infrastructure, stakeholders agree that unlocking MMA2’s next growth phase, particularly through the commencement of regional flights, could significantly enhance its economic and strategic impact.
Until then, MMA2 remains a landmark achievement, still teaching lessons about investment, policy and the true cost of delayed decisions.
At 18 years, MMA2 stands as Nigeria’s first privately funded airport terminal, combining strong passenger growth with early financial struggles and delayed regional flights. Experts Celestine Ukpong and Peter Adebayo FCA assess the lessons, gaps and future potential of the Bi-Courtney-operated terminal.
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