The Federal Government has finally brought an end to a long-running 20-year dispute over the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, reaching a full settlement with Bi-Courtney Aviation Services Limited.
The agreement also clears the way for regional flight operations to begin at MMA2, a major shift that could reshape how airlines operate in and out of Lagos.
The dispute dates back to the early 2000s, when Bi-Courtney, led by businessman Wale Babalakin, was granted a concession to develop and manage MMA2. Over time, disagreements emerged over the scope of the agreement, especially after the government withdrew approval for regional flights during the administration of former President Goodluck Jonathan, despite significant investments reportedly exceeding ₦600 million by the company.
Announcing the resolution after Thursday’s Federal Executive Council meeting chaired by President Bola Tinubu, Aviation Minister Festus Keyamo said both parties had agreed to “bury the hatchet” and move forward.
According to him, the settlement addresses all outstanding legal and operational issues tied to the concession, including claims that the agreement extended to the nearby MMA1 terminal. That dispute had previously gone all the way to the Supreme Court, which ordered the Federal Government to pay about ₦132 billion plus interest.
As part of the new arrangement, Bi-Courtney has agreed to waive the court-awarded debt and return MMA1 fully to government control. The company has also dropped earlier exclusivity claims that blocked other aviation infrastructure projects, including the proposed Lekki Airport.
In return, the government has reinstated Bi-Courtney’s rights to complete and operate a long-delayed hotel and conference centre project located opposite MMA2. The project, according to Keyamo, must be completed within 24 months and will be jointly operated with the Federal Government.
“We will not tolerate any further delay,” the minister said, stressing that the deal is structured on a shared-benefit basis rather than exclusivity.
Keyamo also confirmed that regional flight operations have now been officially moved to MMA2, adding that the concessionaire and the Federal Government will begin sharing revenue generated from the terminal going forward.
He described the agreement as a “balanced resolution” that finally closes one of the most complex aviation disputes in Nigeria’s history.
In a related development, the Federal Executive Council also approved three major rail projects worth $2.99 billion. These include the Lagos Green Line (Phase 1A), the Kano Metro Rail, and the Kaduna Light Rail.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the projects will be financed through the Ministry of Finance Incorporated, with support from counterpart funding arrangements.
He noted that the rail developments are expected to significantly improve urban transportation, ease movement across major cities, and contribute to broader economic growth.
