The Federal Government has reached a settlement with Bi-Courtney Limited over the long-running dispute surrounding the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, paving the way for renewed concession fee payments and the completion of abandoned hotel and conference centre projects.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the agreement on Tuesday during its formalisation involving the Federal Government, the Federal Airports Authority of Nigeria (FAAN), Bi-Courtney Limited and Stabilini Visinoni Limited.
Keyamo said the settlement would end years of litigation and financial disagreements that prevented FAAN from collecting concession fees under the original agreement.
He said Bi-Courtney would resume payments due to FAAN, describing the development as an opportunity for the airport authority to begin earning revenue from the terminal after nearly two decades of disputes.
The settlement also provides for the reciprocal waiver of outstanding financial and other claims by the parties, allowing them to proceed under revised and clearly defined obligations.
According to Keyamo, the Federal Executive Council (FEC) approved the framework for the negotiated settlement on April 30, 2026, under President Bola Tinubu.
Under the agreement, Bi-Courtney has relinquished its exclusive rights under the original concession arrangement, while the Federal Government has agreed to allow the company to expand the terminal’s apron to accommodate regional flights within Africa, subject to MMA2’s full capacity.
The agreement also clarifies the status of the General Aviation Terminal, commonly known as the old domestic terminal, which remains government property and is operated by FAAN.
The minister said the settlement addressed outstanding disputes over a four-star hotel and conference centre near the airport through restored rights and separate lease agreements defining the obligations attached to each facility.
He urged Bi-Courtney to complete the abandoned projects, describing the unfinished structures as an eyesore that had remained at the airport for nearly two decades.
Keyamo added that the government and relevant regulatory agencies would retain oversight of airport security, emergency response, operations and maintenance standards.
He said the agreement was expected to improve investor confidence, generate government revenue and create employment and commercial opportunities in the aviation sector.
The minister attributed the breakthrough to negotiations with Bi-Courtney chairman, Wale Babalakin, after he assumed office, saying both sides agreed to pursue a settlement despite years of court battles.
The dispute dates back to April 24, 2003, when the Federal Government entered into a concession agreement with Bi-Courtney and Stabilini Visinoni Limited for the design, construction, operation and eventual transfer of MMA2.
The terminal was conceived as a replacement for a domestic airport facility damaged by fire in 2000. The concession initially covered 12 years from May 7, 2007, but was later extended to 36 years.
Disagreements over financial claims, concession benefits and ownership of airport assets subsequently triggered several lawsuits, some of which reached the Supreme Court.
A separate dispute arose after FAAN terminated the leases for the hotel and conference centre on April 19, 2012, citing alleged failure to fulfil construction obligations. Bi-Courtney challenged the decision in court.
Babalakin thanked Tinubu and Keyamo for facilitating the settlement, saying it would create well-paying jobs and improve the airport’s surroundings.
He also expressed confidence that the agreement would demonstrate how disputes between private investors and government could be resolved through sustained negotiations.
Babalakin assured the government and Nigerians that Bi-Courtney would fulfil its obligations under the settlement.
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