FAAN BEGINS EARNING REVENUE FROM MMA2 AS FG, BI-COURTNEY SETTLE 20-YEAR DISPUTE

By Aishat Momoh. O.

The Federal Airports Authority of Nigeria has begun earning revenue from the Murtala Muhammed Airport Terminal Two following the resolution of its nearly two-decade dispute with Bi-Courtney Aviation Services Limited.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Tuesday during the formalisation of a settlement agreement involving the Federal Government, FAAN and Bi-Courtney, following the Federal Executive Council’s approval of the negotiated terms on April 30, 2026.

“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,” Keyamo said.

The settlement covers the concession agreement for the domestic terminal, MMA2, as well as related leases for a four-star hotel and conference centre near the airport, whose abandoned structures have remained an eyesore for years.

Keyamo described the agreement as a significant development for Nigeria’s aviation sector, noting that it followed sustained engagements and difficult negotiations between the government and the concessionaire.

“Let me state clearly at the outset that this resolution was achieved under the administration of President Bola Tinubu. On the 30th of April 2026, the Federal Executive Council, under the leadership of His Excellency, approved the terms of the negotiated settlement,” he said.

The minister said the agreement would enable both parties to move beyond years of litigation and fulfil their respective obligations under a revised contractual framework.

The dispute originated from a concession agreement signed on April 24, 2003, between the Federal Government, acting through relevant aviation institutions, Bi-Courtney Limited and Stabilini Visinoni Limited for the design, construction, operation and eventual transfer of the domestic terminal.

Initially scheduled to run for 12 years from May 7, 2007, the concession was subsequently extended to 36 years.

Disagreements over financial claims and contractual obligations later triggered several court cases across successive administrations.

While Bi-Courtney maintained that it had been denied benefits promised under the concession, FAAN asserted its financial entitlements and responsibility to protect public airport assets.

The dispute also involved the ownership of the General Aviation Terminal, popularly known as MMA1, and financial claims involving the Asset Management Corporation of Nigeria.

According to Keyamo, the Supreme Court had affirmed that the General Aviation Terminal, also known as the Old Domestic Airport, should be handed over to Bi-Courtney Limited.

However, under the new settlement, the terminal will remain the property of the Federal Government and be operated by FAAN.

“The agreement explicitly recognises GAT as belonging to the federal government and being operated by FAAN. This removes a central point of conflict and allows government to plan airport development within the revised contractual framework,” he said.

As part of the settlement, Keyamo said the government had agreed to allow Bi-Courtney to expand its apron and accommodate regional flights within Africa at MMA2, subject to the terminal’s capacity.

The agreement also provides for reciprocal waivers of outstanding claims by both parties, including historical financial claims and specified ancillary payments.

“The first major feature is the settlement of the historical claims. Upon execution, Bi-Courtney waives all outstanding claims against the government not yet settled, financial or otherwise. FAAN, on the other hand, and the federal government also make concessions as of today,” the minister said.

He explained that the government’s concessions included relinquishing historical claims against the concessionaire, including accumulated concession fees and specified ancillary payments arising before the agreement was executed.

Keyamo stressed that the arrangement was not a one-sided concession but a mutual settlement designed to establish clearer obligations for both parties.

“The public should therefore understand that this is a reciprocal settlement. Both sides have agreed to surrender claims so that the relationship can proceed on defined terms,” he said.

Beyond resolving past disputes, the minister said the agreement would restore regular concession-fee payments to FAAN under the original arrangement.

He added that the government would retain regulatory oversight over security, access, emergencies and maintenance standards, while both parties would work towards compliance with the revised terms.

The settlement also addresses the four-star hotel and conference centre through restored rights and separate lease agreements.

FAAN and Bi-Courtney had executed separate leases for the facilities on February 2, 2007. However, FAAN terminated the leases on April 19, 2012, alleging that the construction obligations had not been fulfilled.

Bi-Courtney subsequently challenged the termination in court.

Keyamo said the settlement followed President Tinubu’s directive and negotiations between the ministry and the chairman of the Bi-Courtney Group, Dr Wale Babalakin, SAN.

He said the discussions involved legal, commercial and technical teams from both sides and eventually produced an agreement despite the complexity of the dispute.

“Under President Tinubu’s directive, when we came on board, I, as Minister of Aviation and Aerospace Development, initiated and pursued and negotiated a settlement with the alter ego of Bi-Courtney Ltd. and Stabilini Visinoni Ltd., which is Dr. Wale Babalakin, S.A.N. We both sat down as members, which brought all our legal prowess to bear on so many of the complicated and seemingly intractable issues,” he said.

Keyamo recalled that the negotiations initially appeared difficult but said both sides prioritised the national interest.

“As I said, when we started it off, we thought it was completely intractable, Wale Babalakin and I. But we were patriots in the first instance before we even looked at our dispute. We thought that Nigeria was bigger than all of us,” he said.

He added that both parties made concessions to reach an agreement.

“He was actually very generous and the federal government was also generous in different respects too and helped us to look at the issues dispassionately. So for me, the federal government had three for the price of one,” he said.

The minister said the settlement would provide the government with renewed revenue, give the concessionaire greater investment certainty and create opportunities for employment and commercial activities in the aviation sector.

He urged FAAN and Bi-Courtney to ensure that the agreement resulted in completed facilities, reliable services 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 said.

Keyamo also commended Babalakin and the companies involved for accepting a negotiated resolution despite having obtained a favourable judgment.

“I particularly commend Dr Wale Babalakin and Bi-Courtney Ltd., Stabilini Visinoni Ltd. and the advisors for embracing a negotiated resolution despite having a judgement favourable to them. This is statesmanship in action, recognising that the greatest victory is not always in prolonging a dispute but in creating the conditions for lasting progress,” he said.

Speaking at the event, Babalakin said the dispute had remained unresolved for more than 18 years despite the issues remaining largely unchanged until the Tinubu administration intervened.

“It’s been on for over 18 years. The facts are the same, the issues are the same, yet it remained unresolved until President Bola Tinubu, through his minister, Mr Festus Keyamo, found a solution to this issue. We are very grateful,” he said.

Babalakin said the settlement would create well-paying jobs and improve the appearance of the airport through the completion of previously abandoned projects.

“We also want to thank all Nigerians. This is not a game for us alone. It is going to unleash several quality jobs into the system immediately.

“I mean quality jobs. These are jobs that pay very well. It’s also going to improve the facade of the airport significantly, because the abandoned projects were an eyesore,” he added.