The federal government has reached a negotiated settlement with Bi-Courtney Limited and Stabilini Visinoni Limited over the Murtala Muhammed Airport Terminal Two (MMA2) concession in Lagos, ending a dispute that lasted nearly two decades and involved multiple court cases.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the resolution on Tuesday, stating that the agreement would enable the Federal Airports Authority of Nigeria (FAAN) to resume collecting concession fees from MMA2, while clearing the way for the completion of abandoned hotel and conference centre projects near the airport.
Keyamo disclosed that the settlement framework was approved by the Federal Executive Council (FEC) on April 30, 2026, under President Bola Tinubu’s administration.
He described the agreement as a significant development for the aviation sector, noting that years of litigation had prevented the parties from resolving their differences and moving forward with the projects.
Under the agreement, Bi-Courtney will waive outstanding claims against the federal government, while the government and FAAN would release specified historical claims against the concessionaire, including accumulated concession fees and related payments arising before the settlement
“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,” Keyamo said.
He explained that the arrangement was a reciprocal settlement under which both parties had agreed to relinquish past claims in favour of a fresh contractual relationship with defined financial and operational obligations.
The settlement also addresses a longstanding disagreement over the General Aviation Terminal, known as the old domestic terminal or MM1.
Keyamo said the agreement recognised the General Aviation Terminal as belonging to the federal government and being operated by FAAN, following a series of court proceedings over the parties’ competing claims. In return, the government has agreed to allow Bi-Courtney to expand its apron and accommodate regional flights within Africa at MMA2, subject to the terminal’s capacity.
The agreement also restored rights relating to the four-star hotel and conference centre, which have remained incomplete for years following a separate dispute over their leases.
Keyamo urged Bi-Courtney chairman, Wale Babalakin, a Senior Advocate of Nigeria, to ensure that the abandoned buildings were completed, describing them as an eyesore for airport users.
“Everybody drives through there every day, so I am saying it before the camera: anytime you are driving through, look whether Babalakin is building that place and raise the alarm and call me if I am not there,” the minister said.
He added that the completion of the facility would improve the airport’s surroundings and create employment opportunities.
TheHintsNews reports that the dispute originated from a concession agreement executed by the Federal Government and the two companies on April 24, 2003, for the design, construction, operation and eventual transfer of the domestic terminal.
The concession, which initially provided for a 12-year term commencing on May 7, 2007, was subsequently extended to 36 years.
Disagreements over financial entitlements, the terminal’s operations and the ownership of related airport facilities resulted in prolonged litigation across different courts, including the Supreme Court.
A separate dispute arose over leases for the hotel and conference centre, which FAAN terminated in April 2012 over alleged failure to meet construction obligations. Bi-Courtney challenged the termination in court.
Keyamo noted that the negotiations required sustained engagement between the parties, adding that his legal background and that of Babalakin helped them examine the issues and find common ground.
He also disclosed that the Federal Government did not engage or pay an external lawyer to negotiate the settlement, as both sides relied on their legal and technical teams.
Keyamo said the government and the concessionaire would now be expected to fulfil their respective financial, construction and operational obligations, while FAAN would provide the necessary cooperation.
He stressed that regulatory oversight, airport security, emergency arrangements and maintenance standards would remain protected under the agreement.
The minister said the success of the settlement would ultimately be measured by the completion of the facilities, renewed government revenue and improved services for passengers and other airport users.
Speaking at the event, Babalakin welcomed the resolution and thanked Tinubu and Keyamo for facilitating an agreement on an issue he said had remained unresolved for more than 18 years.
He said the settlement would unlock investment, generate well-paying jobs and improve the appearance of the airport environment.
Babalakin added that the agreement could encourage investors who had become discouraged by disputes with the government to consider negotiated settlements as a viable means of resolving disagreements.