The Federal Government and Bi-Courtney Aviation Services Limited, the operator of the Murtala Muhammed Airport Terminal Two in Lagos, have reached a settlement ending their more than 18-year dispute over the concession of the airport facility.
The resolution followed the signing of a fresh agreement in Abuja on Tuesday, with both parties agreeing to a framework designed to settle their longstanding differences and clarify their respective obligations.
The Minister of Aviation and Aerospace Development, Festus Keyamo, signed the agreement on behalf of the Federal Government, while BASL Chairman, Dr Wale Babalakin, represented the company.
Speaking after the signing ceremony, Keyamo said the agreement established a framework for both parties to meet their obligations through mutual concessions. He disclosed that President Bola Tinubu had approved the final terms of the settlement, which include the waiver of historical claims by both sides.
As part of the resolution, the Federal Airports Authority of Nigeria (FAAN) is expected to commence the collection of concession fees payable under the original settlement arrangement.
The agreement also addresses the status of the General Aviation Terminal (GAT), affirming that the facility belongs to the Federal Government and is operated by FAAN.
Another key provision permits Bi-Courtney to expand the apron at MMA2 and commence regional flight operations to destinations across Africa. However, the proposed expansion and regional services will depend on the terminal’s full operational capacity and compliance with relevant regulatory requirements.
The parties did not disclose the financial details of the settlement, including the total concession fees payable to FAAN or the timetable for the payments.
Keyamo described his involvement in resolving the prolonged disagreement as a privilege, expressing optimism that the outcome would deliver benefits to Nigerians and support the growth of the country’s aviation industry.
In his remarks, Babalakin praised Tinubu for facilitating an agreement to end the dispute, which had remained unresolved for over 18 years.
He said the settlement could stimulate employment opportunities and help revive activities in the aviation sector. He also expressed concern over abandoned projects, describing them as an eyesore, and argued that resolving the disagreement could strengthen investor confidence in government-related projects.
According to Babalakin, the agreement would demonstrate that disputes between investors and government institutions could be resolved, potentially encouraging others to pursue investment opportunities without fear that disagreements with public agencies would remain unresolved.
He said: “Furthermore, it’s going to encourage a lot of people who feel daunted and discouraged when they have issues with the government that there is a possible resolution.
“On this note, I want to thank you all. We will not disappoint the President, we will not disappoint you all, the ministry, FAAN and even the nation.”
The settlement marks a significant development in the relationship between the Federal Government and BASL, with the implementation of the new framework expected to determine the next phase of operations and development at MMA2.
Although the agreement outlines provisions for concession payments, terminal ownership and expanded flight operations, further details on its financial arrangements and implementation timeline are yet to be made public.
