LAGOS, Nigeria — The Federal Government’s ₦712 billion plan to rehabilitate Murtala Muhammed Airport faces potential delays over compensation disputes with private jet hangar owners, raising fears of costly legal battles and stalled progress.
Investigations indicate that at least three major hangars could be affected by the planned apron expansion: Dominion Hangar (owned by Bishop David Oyedepo’s Living Faith Church Worldwide), EAN Hangar (home to multiple private jet operators), and Caverton’s hangar. Operators warn that demolition or relocation without adequate compensation could trigger litigation.
“Building just one hangar costs billions of naira. If FAAN or the ministry refuses to meet these demands, the matter will certainly end up in court,” said an official from the Federal Ministry of Aviation.
The Federal Airports Authority of Nigeria (FAAN) has reportedly received valuation documents and proposed compensation figures from operators, but the sums are considered “enormous,” casting doubt on the government’s readiness to fund the relocations.
Minister of Aviation Festus Keyamo, championing the renovation, said the project—executed by Chinese construction firm CCECC—includes a complete terminal overhaul, apron expansion, redesigned access roads, and infrastructure upgrades, including two new ring roads and a bridge providing direct access to the departure floor.
However, the minister’s breakdown of the N712bn budget excludes hangar compensation, an omission experts warn could derail the project. FAAN has informed operators of relocation plans but has yet to clarify compensation size or timing, fueling mistrust.
Aviation expert Group Captain (retired) John Ojikutu stressed that compensation is FAAN’s responsibility, not the ministry’s, and that unresolved disputes could result in litigation under Nigerian and international aviation standards.
The stakes are high: hangar operators face potential loss of multi-million-dollar facilities, while the government risks legal delays on a flagship infrastructure project. Industry insiders warn that without timely resolution, the Lagos airport makeover could be stalled for years, affecting airlines and passengers at Nigeria’s busiest aviation hub.
