Nigeria and Bi-Courtney Aviation Services Limited have signed a final settlement agreement to resolve a nearly 20-year dispute over the concession of Murtala Muhammed Airport Terminal Two in Lagos, the Aviation and Aerospace Development Minister announced on Tuesday. Festus Keyamo said the Federal Executive Council approved the settlement on 30 April 2026 under President Bola Tinubu's administration, after years of litigation involving competing financial claims worth N132 billion between the Federal Government, the Federal Airports Authority of Nigeria (FAAN), Bi-Courtney and Stabilini Visinoni Limited. Keyamo described the agreement as a significant milestone for Nigeria's aviation sector, saying it would replace prolonged legal disputes with defined financial and operational obligations.
Under the settlement, Bi-Courtney will waive outstanding claims against the government, while FAAN and the Federal Government will release specified historical claims against the concessionaire, including accumulated concession fees and certain ancillary payments arising before the agreement's execution. Keyamo said the reciprocal arrangement was intended to settle past disputes and establish a clearer basis for the parties to fulfil their obligations going forward. FAAN had not earned concession revenue from MMA2 for about 20 years because of the dispute, but will begin receiving payments under the revised arrangements, according to the minister.
The agreement also addresses a longstanding disagreement over the General Aviation Terminal, commonly known as the old domestic airport or MMA1. Keyamo said the revised framework explicitly recognises the terminal as belonging to the Federal Government and being operated by FAAN, removing a major source of conflict between the parties. In return, the government has agreed to allow Bi-Courtney to expand its apron and accommodate regional flights within Africa at MMA2, subject to the terminal's full capacity. The settlement also provides for restored rights and separate lease arrangements for a four-star hotel and conference centre located near the airport, which have remained incomplete for years.
The dispute dates back to a concession agreement signed on 24 April 2003 for the design, construction, operation and eventual transfer of the domestic terminal. The concession, which initially provided for a 12-year term beginning on 7 May 2007, was later extended to 36 years. The parties subsequently developed competing claims over the concession's financial terms, the terminal's operations and rights associated with other airport facilities, leading to multiple court proceedings that reached the Supreme Court. A separate dispute over the hotel and conference centre leases followed after FAAN terminated them in April 2012 over alleged failure to fulfil construction obligations, which Bi-Courtney challenged in court.
Wale Babalakin, Bi-Courtney chairman, commended Tinubu and Keyamo for resolving the dispute, saying the issues had remained unresolved for more than 18 years despite the facts being known to both parties. He said the agreement would unlock employment opportunities, improve the appearance of the airport environment and encourage investors who had become discouraged by prolonged disputes with government institutions. Babalakin pledged that Bi-Courtney would fulfil its obligations under the agreement, adding that the company would not disappoint the President, the aviation ministry, FAAN or the country. Keyamo urged Babalakin to complete the hotel and conference centre facilities, saying their delivery would add to the airport's commercial infrastructure and improve the surrounding environment.