FG, Bi-Courtney End 20-Year MMA2 Dispute as FAAN Resumes Concession Fee Collection
Oru Leonard
The Federal Government of Nigeria, has reached a settlement with Bi-Courtney Limited and Stabilini Visinoni Limited over the Murtala Muhammed Airport Terminal Two (MMA2) concession in Lagos, bringing an end to a protracted legal dispute that lasted nearly 20 years.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the resolution on Tuesday in Abuja, disclosing that the settlement framework was approved by the Federal Executive Council (FEC) on April 30, 2026, under President Bola Tinubu.
Under the agreement, the Federal Government and the Federal Airports Authority of Nigeria (FAAN) will relinquish specified historical claims against the concessionaire, including outstanding concession fees and other payments accumulated before the settlement.
In return, Bi-Courtney Limited will waive its outstanding claims against the Federal Government, allowing both parties to establish a new contractual relationship with clearly defined financial and operational responsibilities.
Keyamo described the reciprocal waiver as a critical component of the agreement, noting that the parties had agreed to put their differences behind them to facilitate investment and unlock opportunities in the aviation sector.
He said the resolution would enable FAAN to resume collecting concession fees from MMA2 after two decades of litigation prevented the authority from earning revenue from the terminal.
“FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from that settlement,” the minister said.
The agreement also settles the long-running ownership dispute over the General Aviation Terminal (GAT), popularly known as the old domestic terminal or MM1, which had been a subject of competing claims by the parties.
According to Keyamo, the settlement recognises GAT as the property of the Federal Government, with FAAN responsible for its operations, a position supported by previous court proceedings.
As part of the concessions granted to Bi-Courtney, the Federal Government will permit the company to expand its apron facilities at MMA2 to accommodate regional flights within Africa, subject to the terminal’s operational capacity.
The minister also appealed to Bi-Courtney Chairman, Dr Wale Babalakin, to expedite the completion of the abandoned hotel and conference centre projects near the airport, describing their current condition as an eyesore.
Babalakin welcomed the settlement, expressing appreciation to President Tinubu and Keyamo for their roles in resolving a dispute that had remained unresolved for more than 18 years.
He said the agreement would create opportunities for fresh investments, generate well-paying jobs and improve the airport’s environment.
The Bi-Courtney chairman added that the resolution could encourage investors who had become wary of government-related disputes to consider negotiated settlements as a viable means of resolving commercial disagreements.
The original concession agreement was signed on April 24, 2003, for the design, construction, operation and eventual transfer of the domestic terminal. The concession initially ran for 12 years from May 7, 2007, but was subsequently extended to 36 years.
A separate dispute emerged in April 2012 after FAAN terminated leases relating to the hotel and conference centre projects over alleged failure to fulfil construction obligations.
Keyamo further disclosed that the Federal Government did not engage or pay external lawyers for the settlement negotiations. Instead, both parties relied on their internal legal and technical teams, with the minister and Babalakin drawing on their legal backgrounds to facilitate the resolution.
The settlement is expected to restore a more stable working relationship between the government and the concessionaire while creating a framework for improved revenue generation, investment and operational efficiency at MMA2.
