The Federal Airports Authority of Nigeria (FAAN) has begun earning revenue from the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos following a settlement between the Federal Government and Bi-Courtney Aviation Services Limited over a dispute that lasted almost 20 years.
The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Tuesday through the formalisation of the settlement involving the Federal Government, FAAN, Bi-Courtney and Stabilini Visinoni Limited.
“FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from MMA2,” Mr Keyamo mentioned.
The settlement supplies for the resumption of concession charge funds to FAAN and the reciprocal waiver of specified historic monetary and different claims by the events.
Mr Keyamo mentioned the Federal Executive Council (FEC) authorized the framework for the negotiated settlement on 30 April 2026, following discussions aimed toward resolving the long-running dispute.
What the settlement modifications
Under the revised settlement, Bi-Courtney has agreed to waive its excellent claims towards the Federal Government, whereas the federal government and FAAN will relinquish specified historic claims towards the concessionaire, together with amassed concession charges and associated funds arising earlier than the settlement.
The minister mentioned the association was meant to resolve previous disagreements and set up clearer contractual obligations for the events going ahead.
The settlement additionally addresses a dispute over the General Aviation Terminal (GAT), generally recognized as the Old Domestic Airport.
According to Mr Keyamo, the revised settlement recognises the terminal as the property of the Federal Government, to be operated by FAAN.
The minister mentioned the federal government had agreed to permit Bi-Courtney to increase its apron and accommodate regional flights inside Africa at MMA2, topic to the terminal’s capability.
The settlement additionally restores rights and supplies for separate lease preparations masking a four-star resort and convention centre close to the airport. The services have remained unfinished for years.
Mr Keyamo mentioned the federal government would retain regulatory oversight over safety, entry, emergencies and upkeep requirements, whereas the events would work collectively to implement the revised preparations.
Background to the dispute
In April, PREMIUM TIMES had reported that the Federal Government had reached a settlement with Bi-Courtney to resolve the long-running dispute over MMA2 after years of litigation and disagreements over the airport concession.
Mr Keyamo on the time mentioned the Federal Executive Council (FEC) had authorized the negotiated settlement, which included concessions by each events, revised operational preparations and plans to revive authorities revenue from the terminal.
The dispute originated from a concession settlement signed on 24 April 2003 involving the Federal Government, Bi-Courtney and Stabilini Visinoni Limited for the design, development, operation and eventual switch of the home terminal.
The settlement initially coated 12 years from 7 May 2007 however was subsequently prolonged to 36 years.
Disagreements over contractual obligations, monetary claims and the scope of the concession led to a number of court docket instances throughout successive administrations.
Bi-Courtney maintained that it had been denied advantages below the concession, whereas FAAN asserted its personal monetary entitlements and accountability to guard public airport belongings.
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The dispute additionally concerned the possession of the General Aviation Terminal and monetary claims related to the Asset Management Corporation of Nigeria.
Mr Keyamo mentioned the newest settlement adopted negotiations between the federal government and the chairman of the Bi-Courtney Group, Wale Babalakin, with authorized, industrial and technical groups concerned within the course of.
He added that the settlement would give Bi-Courtney larger certainty to spend money on the terminal whereas permitting the federal government to renew revenue assortment and plan airport improvement below the revised framework.
He urged FAAN and Bi-Courtney to make sure that the settlement resulted in accomplished services, dependable providers and improved airport operations.
“The travelling public should see the result in functioning facilities and dependable service. That is how the value of this settlement will be measured,” he mentioned.
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