The Federal Government and Bi-Courtney Aviation Services Limited have signed a settlement to resolve their long-running dispute over the Murtala Muhammed Airport Terminal Two in Lagos.
The agreement provides for concession fee payments to the Federal Airports Authority of Nigeria and allows Bi-Courtney to expand the terminal’s apron and accommodate regional flights within Africa, subject to capacity and regulatory requirements.
Aviation and Aerospace Development Minister Festus Keyamo signed for the government at the formalisation of the agreement in Abuja on Tuesday, October 20. Bi-Courtney chairman Wale Babalakin signed for the terminal operator, Daily Trust reported.
Keyamo said the settlement involved reciprocal concessions: Bi-Courtney would waive outstanding claims against the government, while the government and FAAN would relinquish specified historical claims against the company. Vanguard and Premium Times reported that those government claims included accumulated concession fees and related payments predating the agreement.
The minister said the arrangement would allow FAAN to earn revenue from MMA2 after years of litigation. Daily Trust reported that the amount payable and the schedule for remitting concession fees were not disclosed.
The revised framework also recognises the General Aviation Terminal, also known as the Old Domestic Airport, as Federal Government property operated by FAAN. Its ownership had been one of the points of disagreement.
Separate lease arrangements cover an unfinished four-star hotel and conference centre near the terminal. Keyamo urged Bi-Courtney to complete the projects and said the parties would work together on construction, concession payments and airport operations. Government oversight of security, emergencies and maintenance standards would remain in place.
The concession agreement was signed on April 24, 2003, for the design, construction, operation and eventual transfer of the domestic terminal. It initially covered 12 years from May 7, 2007, before being extended to 36 years. Disagreements over financial entitlements and contractual obligations led to multiple court cases.
Premium Times reported that the Federal Executive Council approved the negotiated settlement framework on April 30, 2026. Tuesday’s formalisation followed negotiations involving the government, Babalakin and legal and technical teams.
Babalakin said Bi-Courtney would honour its commitments under the agreement.
Sources: Daily Trust, Vanguard, Premium Times
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