Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
The Federal Executive Council has approved a landmark settlement ending a two‑decade legal and commercial dispute with Bi‑Courtney Aviation Services Limited over the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos. Minister of Aviation and Aerospace Development, Festus Keyamo, announced the breakthrough after the FEC meeting chaired by President Bola Tinubu on Thursday, 30 April 2026. The agreement resolves all major points of contention that have clouded the terminal’s operations since its opening in 2007, including a Supreme Court judgment that had awarded the concessionaire N132 billion in damages plus interest accruing from 2009.
Under the settlement, Bi‑Courtney, owned by businessman Wale Babalakin, agreed to write off the entire N132 billion judgment debt and all accrued interest. “The first thing we told him was to write off the N132 billion plus interest. Nobody is going to pay that, and he agreed and wrote it off,” Keyamo told State House correspondents. The company also relinquished its claim to the Murtala Muhammed Airport Terminal One (MM1), the older domestic terminal that had been a central bone of contention. Bi‑Courtney further dropped an exclusivity clause that had for years blocked the development of other private airport projects, notably the proposed Lekki Airport promoted by the Lagos State Government. Keyamo stated that the clause was “not right, even for security reasons,” and its removal clears the way for new aviation infrastructure.
In return, the Federal Government reinstated Bi‑Courtney’s concession to complete a stalled five‑star hotel and conference centre opposite MMA2. The company has been given 24 months to finish the facility, which will be operated on a shared‑ownership basis with the government. “We gave it back to him to complete and run on a shared basis with the federal government. He has 24 months to deliver it. We will not tolerate further delays,” Keyamo said.
As part of the settlement, the government has finally approved the relocation of regional flight operations to MMA2. This has been a long‑standing issue; Bi‑Courtney had built dedicated infrastructure for regional flights and invested over N600 million, but its approval to operate such services was withdrawn under a previous administration. The new agreement also activates a revenue‑sharing mechanism, ensuring that the Federal Government will begin to earn its share from MMA2 operations immediately. “Immediately after today, the federal government will now begin to earn its own share from the operations of MMA2,” Keyamo said. The government will also fund the expansion of the terminal’s apron where necessary to accommodate more aircraft.
The dispute originated in 2003, when Bi‑Courtney was awarded a Design‑Build‑Operate‑Transfer concession to construct a new domestic terminal after fire destroyed the old facility. MMA2 opened in 2007 as Africa’s first entirely privately funded airport terminal, but disagreements quickly arose over the scope of the contract, revenue entitlements, ownership of MM1, and the exclusivity clause. These disagreements escalated into prolonged court battles, culminating in a Supreme Court ruling in Bi‑Courtney’s favour that ordered the government to hand over MM1 and pay the N132 billion judgment debt with interest from 2009. The settlement now nullifies that ruling and replaces it with a consensual framework.
In a related development, the FEC also approved the establishment of a Nigerian aircraft leasing company. The new entity will be structured as a private sector‑driven Special Purpose Vehicle, with the government providing sovereign guarantees. Keyamo said the initiative is designed to address the chronic challenge local airlines face in accessing long‑term aircraft and equipment, reduce dependence on foreign lessors, and improve operational stability across the industry.
The government has scheduled a formal signing ceremony in Lagos, where the full details of the agreement will be presented publicly. The aviation minister described the deal as a “give‑and‑take” resolution from which both sides emerge as winners. “He made concessions, and we also made concessions. Both sides benefited,” Keyamo said. The settlement closes one of the most protracted and consequential legal battles in Nigeria’s aviation history and is expected to modernise domestic and regional air travel while unlocking new revenue streams for public coffers.
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