Amanze Chinonye
President Tinubu has sanctioned a far-reaching agreement between the Federal Government and Bi-Courtney Aviation Services Limited, bringing an end to a two-decade dispute over the concession of the domestic terminal at Murtala Muhammed Airport, Lagos, Prime Business Africa reports.
The settlement, approved by the Federal Executive Council at its meeting on Thursday, resolves a long-running legal and commercial standoff surrounding the Murtala Muhammed Airport Terminal Two (MMA2), operated by the company founded by Wale Babalakin.
Minister of Aviation and Aerospace Development, Festus Keyamo, described the deal as a decisive breakthrough, noting that both sides made significant compromises to end years of litigation that had clouded the terminal’s operations since inception.
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The dispute dates back to 2003 when Bi-Courtney secured a Design-Build-Operate-Transfer concession to develop a new domestic terminal after a fire destroyed the old facility. Although MMA2 commenced operations in 2007 as Africa’s first fully privately financed airport terminal, disagreements quickly arose over the scope of the contract, including ownership claims to the General Aviation Terminal (MMA1), revenue entitlements, and a controversial exclusivity clause restricting competing airport projects within Lagos.
These disagreements escalated into prolonged court battles, culminating in a Supreme Court ruling that awarded Bi-Courtney about ₦132 billion against the Federal Government, with interest accruing from 2009.
Under the newly approved terms, Bi-Courtney has agreed to forgo the ₦132 billion judgment debt and associated interest, surrender its claim to MMA1, and accept the removal of the exclusivity clause clearing longstanding obstacles to new aviation infrastructure, including the proposed Lekki Airport.
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In exchange, the Federal Government has reinstated Bi-Courtney’s rights to develop a previously revoked hotel and conference facility adjacent to MMA2, under a revised arrangement that includes shared benefits and a 24-month completion deadline.
Authorities also approved the transfer of regional flight operations to MMA2 to increase passenger traffic, alongside commitments to expand apron capacity where required.
The agreement further resets the financial framework of the concession, with the Federal Government now set to immediately commence receiving its share of revenues from MMA2 operations.
Officials say the resolution eliminates the major points of contention that defined the dispute and positions the terminal for improved commercial performance, while also strengthening investor confidence in Nigeria’s aviation sector.
A formal signing ceremony is expected in Lagos in the coming days, where detailed provisions of the agreement will be publicly outlined in the presence of key stakeholders, including aviation regulators.
In a related development, the council also approved plans for a national aircraft leasing company to be structured as a private sector-driven special purpose vehicle.
The initiative, backed by government guarantees and equity participation through the Ministry of Finance Incorporated, is aimed at addressing persistent aircraft leasing challenges faced by Nigerian airlines and improving operational stability across the industry.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
