A comprehensive settlement has been reached between the Federal Government, Bi-Courtney Aviation Services Limited, and the Federal Airports Authority of Nigeria (FAAN), bringing a definitive close to a twenty-year legal and financial disagreement regarding the Murtala Muhammed Airport Terminal Two situated in Lagos.
Announcing the resolution, Aviation Minister Festus Keyamo said the agreement, formalised under President Bola Tinubu’s administration, demonstrates the value of private investment in public infrastructure and constructive dialogue in resolving complex disputes.
The dispute dates back to a 2005 fire that destroyed the old domestic terminal. Subsequent disagreements over concession terms, terminal operations, fees and a proposed airport hotel escalated into litigation that reached the Supreme Court.
Under the settlement, Bi-Courtney has waived its outstanding financial claims against the Federal Government, while FAAN has agreed to waive historically accrued concession fees. The agreement also establishes terms for FAAN’s statutory earnings and provides a framework for MM2 operations and the development of the airport hotel and conference centre.
Bi-Courtney Chairman, Dr Wale Babalakin, SAN, described the deal as a demonstration of patriotism by both parties and is expected to improve government revenue, create jobs and strengthen investor and traveller confidence
What You Should Know
After two decades of legal battles and stagnation, the Federal Government and Bi-Courtney have finally settled their differences over the Murtala Muhammed Airport Terminal Two (MM2) in Lagos, clearing the path for smoother operations and future developments like an airport hotel.
- Positive Impact: This resolution ends costly litigation, encourages private investment in public infrastructure, boosts government revenue, and increases confidence for investors and travelers alike.
- Potential Concerns: The long-standing dispute previously created uncertainty for aviation stakeholders, though current terms have wiped clean outstanding historical claims to allow a fresh start.
