FG, Bi-Courtney end 20-year MMA2 dispute

The Federal Government and Bi-Courtney Aviation Services Limited have formally settled a nearly twenty-year legal battle over the Murtala Muhammed International Airport Terminal Two (MMA2) in Lagos. The agreement, signed on Tuesday in Abuja, paves the way for the Federal Airports Authority of Nigeria (FAAN) to resume collecting concession fees from the terminal. It also establishes a framework to complete long-abandoned hotel and conference center projects situated opposite the airport. Minister of Aviation and Aerospace Development Festus Keyamo announced the resolution during the official signing ceremony. He stated that FAAN had not received a single naira in concession fees from MMA2 for approximately two decades due to ongoing litigation. With the new terms in place, the authority can immediately begin generating revenue. Keyamo explained that the Federal Executive Council approved the negotiated settlement on April 30, 2026. This decision reflected President Bola Tinubu’s directive to resolve the protracted conflict through negotiation rather than continuing court battles. The settlement functions as a reciprocal arrangement. Both parties have agreed to relinquish specific outstanding claims to foster future cooperation. Under these terms, Bi-Courtney waives its remaining demands against the state. In exchange, the Federal Government and FAAN drop designated historical claims against the concessionaire. These waived amounts include accumulated concession fees and other related payments that accrued prior to the execution of the new agreement. A central point of contention resolved by the deal involves the General Aviation Terminal, often referred to as MMA1 or the Old Domestic Airport. The revised contract explicitly recognizes this facility as federal property. Consequently, FAAN assumes full operational control of the terminal. To balance this shift, the government granted Bi-Courtney permission to expand its apron at MMA2. This expansion allows the company to handle regional flights within Africa, provided the terminal’s physical capacity supports such activity. The agreement also addresses the status of a four-star hotel and conference center project. These structures have stood unfinished and abandoned for years near the airport. The new framework restores rights and outlines separate lease arrangements for these properties. Keyamo urged Bi-Courtney to fulfill its construction obligations promptly. He described the completed facilities as valuable additions to Nigeria’s aviation and hospitality sectors. The government intends to collaborate with FAAN and Bi-Courtney to enforce compliance regarding construction timelines, concession payments, and general airport operations. Regulatory oversight, including airport security, emergency protocols, and maintenance standards, will remain under strict governmental supervision. The roots of the dispute trace back to April 24, 2003, when the original concession agreement was signed. This initial contract involved the Federal Government, Bi-Courtney, and Stabilini Visinoni Limited. It covered the design, construction, operation, and eventual transfer of the domestic terminal. Operations officially began on May 7, 2007. While the concession was originally set for twelve years, it was later extended to thirty-six years. Over time, disagreements emerged regarding financial entitlements, contractual obligations, and asset ownership. These conflicts sparked multiple legal proceedings that spanned several presidential administrations, with some cases reaching the Supreme Court. Bi-Courtney argued that it had been deprived of benefits guaranteed under the concession. Conversely, FAAN insisted on its right to collect financial dues and protect public airport assets. The dispute also encompassed ownership questions surrounding the General Aviation Terminal and financial claims linked to the Asset Management Corporation of Nigeria. Negotiations leading to the current settlement were conducted directly between the government and Wale Babalakin, chairman of the Bi-Courtney Group. Legal, commercial, and technical teams from both sides participated in the talks. Keyamo noted that the Federal Government did not hire external lawyers for these negotiations. Speaking at the event, Babalakin expressed gratitude to President Tinubu and Keyamo for ending the standoff. He remarked that the issue had remained unresolved for more than eighteen years, even though both parties had held firm to their positions throughout the period. Babalakin predicted that the settlement would generate employment opportunities, particularly through the completion of the stalled construction projects. He also suggested that finishing these buildings would improve the overall aesthetic and functional environment of the airport. The involvement of Stabilini Visinoni Limited in the original 2003 agreement marks the third entity named in the foundational documents, alongside the state and Bi-Courtney. The immediate resumption of fee collection signals a practical end to the financial stalemate that defined the previous two decades of the relationship.