The Federal Airports Authority of Nigeria (FAAN) has described the resolution of the long-standing concession dispute involving the Murtala Muhammed Airport Terminal Two (MMA2) as a significant milestone that could strengthen investor confidence and improve future public-private partnership (PPP) projects within the aviation industry.
Speaking at an aviation conference in Lomé, Togo, FAAN’s Managing Director and Chief Executive Officer, Olubunmi Kuku, said successful PPP arrangements depend not only on funding but also on regulatory stability, effective institutions, and proper project management.
The MMA2 concession dispute, which lasted for two decades, was recently resolved through an agreement between the federal government and the terminal’s operator. As part of the settlement, the operator agreed to forgo a substantial judgment debt while retaining the opportunity to continue work on a planned conference centre project near the terminal.
Kuku noted that infrastructure projects across Africa often struggle due to policy inconsistencies, concerns about project continuity, and investment risks that discourage private sector participation. She said the MMA2 concession had become one of Nigeria’s most debated airport partnership projects, generating years of uncertainty and disagreements.
According to her, the successful resolution sends a positive message to investors by demonstrating the government’s commitment to addressing contractual disputes and creating a more predictable investment environment.
She added that the experience provides valuable lessons for future concession agreements, emphasizing the importance of creating balanced contracts that protect both government interests and those of private investors.
Kuku also called for stronger collaboration between governments, development finance institutions, multilateral lenders, and private investors to address Africa’s aviation infrastructure challenges. She stressed that improving connectivity across the continent requires coordinated investment rather than reliance on public funding alone.
The FAAN chief further encouraged early engagement between project promoters and financiers to ensure infrastructure projects are structured in ways that attract investment and generate sustainable returns.
As part of its long-term strategy, FAAN is developing plans to upgrade airport terminals, cargo facilities, airside infrastructure, and safety systems across Nigeria. The authority is also assessing the needs of secondary airports and considering initiatives that could encourage airlines to expand services to underserved locations.
While some airport projects may be suitable for private investment because of their revenue potential, Kuku noted that others will continue to require direct government support due to their critical role in aviation safety and security.
