In a decisive move to resolve one of Nigeria’s longest-running aviation disputes, the Federal Government has reached a comprehensive settlement agreement with Bi-Courtney Aviation Services Limited over the Murtala Muhammed Airport Terminal 2 (MM2) in Lagos.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced that the agreement was approved by the Federal Executive Council (FEC) chaired by Bola Ahmed Tinubu. The deal effectively brings to an end a contentious 20-year legal and commercial standoff that has shaped the trajectory of Nigeria’s airport concession framework.
MM2, located within the Murtala Muhammed International Airport, has been at the centre of disputes over concession rights, revenue obligations, and operational control since its handover to Bi-Courtney under a Build-Operate-Transfer (BOT) agreement in 2003.
Key Concessions by Bi-Courtney
As part of the settlement, Bi-Courtney agreed to waive a staggering ₦132 billion in court-awarded damages previously ruled in its favour against the Federal Government. This move is widely seen as a major sacrifice aimed at fostering long-term collaboration and stability.
The company also handed back the old domestic terminal (MMI), which it had secured rights to through a Supreme Court judgment, effectively relinquishing claims to additional airport infrastructure in Lagos.
In a significant shift with implications for market competition, Bi-Courtney surrendered its exclusive rights—previously upheld by the courts—to operate private or domestic airports within Lagos and surrounding areas. This opens the door for broader private sector participation in the state’s aviation ecosystem.
Furthermore, the firm committed to resuming payment of concession fees as stipulated in the original April 24, 2003 agreement, once the settlement terms are fully executed.
Federal Government’s Concessions
On its part, the Federal Government agreed to write off all outstanding concession fees owed by Bi-Courtney over the past two decades, acknowledging that the prolonged dispute disrupted revenue flows on both sides.
In a move to revive stalled infrastructure, the government also returned the previously revoked hotel and conference centre project opposite the airport to Bi-Courtney. The company is expected to complete and operationalise the project within 24 months, with revenue-sharing arrangements benefiting both parties.
To optimise airport capacity and improve passenger experience, the government further approved the relocation of regional flight operations to MM2, subject to the terminal’s operational capacity. This decision is expected to increase traffic throughput and enhance the commercial viability of the terminal.
Additionally, Bi-Courtney will receive extra land allocation to expand the apron at MM2, allowing for increased aircraft parking space and improved operational efficiency.
Industry Implications
Analysts say the agreement marks a turning point for Nigeria’s aviation sector, which has long grappled with regulatory uncertainty and legacy disputes. By resolving the impasse, the government is sending a strong signal to investors about its commitment to upholding contracts while also ensuring flexibility in dispute resolution.
The settlement is also expected to boost investor confidence in airport concessions and public-private partnerships, potentially paving the way for new infrastructure investments across the country.
For Lagos, Nigeria’s busiest aviation hub, the deal could translate into improved infrastructure utilisation, better passenger flow, and enhanced competitiveness as a regional gateway.
A New Chapter for Aviation Reform
The resolution aligns with the broader reform agenda of the current administration, which seeks to modernise Nigeria’s aviation infrastructure and strengthen institutional frameworks.
With both parties making significant concessions, stakeholders believe the agreement represents a pragmatic and forward-looking approach that balances legal realities with economic priorities.
Nigeria ends a 20-year MM2 airport dispute as FG and Bi-Courtney reach a landmark settlement, waiving ₦132bn damages, restoring assets, and unlocking new aviation growth.
The Federal Government and Bi-Courtney have resolved the long-standing MM2 dispute in Lagos, agreeing on major concessions, debt waivers, and infrastructure expansion to boost Nigeria’s aviation sector.
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