The Federal Government and Bi-Courtney Aviation Services Limited, operators of the Murtala Muhammed Airport Terminal Two (MM2), have formalised a settlement to resolve their long-running dispute over the airport concession following President Bola Tinubu’s approval of the negotiated terms.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this during the formalisation of the settlement agreement involving the Federal Government, the Federal Airports Authority of Nigeria (FAAN), Bi-Courtney Limited and Stabilini Visinoni Limited.
Keyamo said the resolution follows sustained engagements and difficult negotiations aimed at reaching an outcome beneficial to all parties and the country.
According to him, the Federal Executive Council (FEC), under Tinubu’s administration, approved the terms of the negotiated settlement on April 30, 2026.
The agreement covers the MM2 domestic terminal and related issues concerning the proposed four-star hotel and conference centre, whose unfinished structures have remained opposite the airport for nearly two decades.
The minister described the agreement as a significant step towards resolving disputes that had persisted across successive administrations and generated multiple court cases.
He explained that the MM2 project was conceived following a fire that damaged the domestic airport terminal in 2000, prompting the Federal Government to explore private sector participation in financing, constructing and operating a replacement facility.
On April 24, 2003, the Federal Government entered into a concession agreement with Bi-Courtney Limited and Stabilini Visinoni Limited for the design, construction, operation and eventual transfer of the domestic terminal.
However, disagreements over financial entitlements and obligations under the agreement led to competing claims between the parties.
While Bi-Courtney maintained that it had been denied certain benefits under the concession, FAAN maintained its position on its entitlements and responsibility to protect public airport assets.
The disagreement resulted in several litigations involving the terminal, the General Aviation Terminal and related financial claims, with some cases progressing from lower courts to the Supreme Court.
Keyamo said the Supreme Court affirmed that the General Aviation Terminal, also known as the old domestic airport terminal, should be handed over to Bi-Courtney Limited.
The financial disputes also involved the Asset Management Corporation of Nigeria (AMCON), including issues relating to judgment debts and set-offs.
Beyond the airport terminal, a separate dispute arose over the four-star hotel and conference centre after FAAN terminated the leases granted to Bi-Courtney on April 19, 2012, citing alleged failure to fulfil construction obligations. Bi-Courtney subsequently challenged the termination in court.
Speaking at the event, Chairman of Bi-Courtney Aviation Services Limited, Dr Wale Babalakin, expressed appreciation to President Tinubu for intervening to resolve the dispute, which he said had remained unsettled for more than 18 years despite the issues remaining largely unchanged.
Babalakin credited the President’s intervention through the Minister of Aviation and Aerospace Development with providing a solution to the protracted disagreement.
He also thanked Nigerians and pledged that the company would deliver quality employment opportunities as part of the expected developments arising from the settlement.
“We are going to unleash a number of quality jobs in Nigeria. I mean quality jobs. It’s a job that pays very well,” Babalakin said.
He added that the development would significantly improve the appearance of the airport, particularly in areas where construction projects have been abandoned.
According to him, resolving the dispute could also encourage investors and developers who might otherwise be discouraged by prolonged disagreements with government agencies.
Babalakin said the settlement demonstrates that disputes between private investors and the government could be resolved through intervention and negotiation.
He pledged that he would not disappoint the President, the aviation ministry, the legal profession or the country.
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