The Federal Government, the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited have reached a settlement ending nearly two decades of disputes over the concession and operations of Murtala Muhammed Airport Terminal Two (MMA2) in Lagos.
The agreement, formalised in Abuja on Tuesday, provides for FAAN to begin receiving concession fees under the revised arrangement, while granting Bi-Courtney permission to expand its apron and operate regional flights across Africa from the terminal, subject to its full capacity.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the settlement, which followed the approval of the negotiated framework by the Federal Executive Council on April 30, 2026, under President Bola Tinubu’s administration.
Keyamo described the agreement as a significant step towards resolving a prolonged dispute that had hindered the parties’ contractual obligations and generated multiple court cases across successive administrations.
“FAAN has not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from MMA2,” the minister said.
The dispute dates back to the concession agreement signed on April 24, 2003, involving the Federal Government, Bi-Courtney and Stabilini Visinoni Limited for the design, construction, operation and eventual transfer of the domestic terminal. The concession initially ran for 12 years from May 7, 2007, before being extended to 36 years.
Over the years, disagreements over financial entitlements, contractual responsibilities and related property arrangements led to prolonged litigation. Bi-Courtney maintained that it had been denied benefits under the concession, while FAAN and the Federal Government pursued their own claims and obligations concerning the airport.
Under the new settlement, both sides have agreed to reciprocal waivers of outstanding historical claims, including financial claims and specified ancillary payments. The government’s concessions include the release of certain accumulated concession fees and related payments arising before the agreement takes effect, allowing the parties to move forward under a revised contractual framework.
The agreement also clarifies the status of the General Aviation Terminal (GAT), commonly referred to as the old domestic terminal. Under the settlement, the facility remains the property of the Federal Government and will be operated by FAAN, resolving a major point of contention between the parties.
In return for the government’s concessions, Bi-Courtney will be permitted to expand its apron and handle regional flights to destinations across Africa from MMA2, within the terminal’s operational capacity.
The settlement also covers related lease arrangements for a four-star hotel and conference centre near the airport. The unfinished structures have remained undeveloped for years amid the wider dispute.
Keyamo said the agreement followed sustained negotiations and was intended to replace years of legal confrontation with a framework that enables both parties to fulfil their obligations.
The resolution is expected to improve the commercial relationship between the government and the concessionaire, unlock opportunities for airport infrastructure development and support additional aviation-related investment. The planned expansion of regional operations could also create jobs and strengthen MMA2’s role in regional air connectivity.
For FAAN, the resumption of concession-fee receipts represents a potential new revenue stream from the terminal after years of disputes. For Bi-Courtney, the settlement provides greater clarity over its operating arrangements and scope for expanding services.
The agreement marks a significant development for Nigeria’s airport concession framework, where disputes over contractual obligations and financial entitlements have often complicated relations between public authorities and private operators.
