The Federal Executive Council (FEC) has approved a comprehensive settlement ending the 20-year concession dispute with Bi-Courtney Aviation Services Limited over the Murtala Muhammed Airport Terminal Two (MM2) in Lagos.
Minister of Aviation and Aerospace Development, Festus Keyamo, announced the resolution on Thursday, April 30, detailing the agreement reached with Bi-Courtney’s leader, Wale Babalakin.
The dispute, which originated from a 2003 concession agreement, produced several major points of contention. The Supreme Court had previously ruled in Bi-Courtney’s favour, ordering the Federal Government to pay the company ₦132 billion plus interest accruing from 2009.
The ruling also affirmed Bi-Courtney’s claim to the adjacent domestic terminal (MM1).
Under the terms of the new settlement, Bi-Courtney has agreed to write off the entire ₦132 billion judgment debt with all accrued interest. The company has also withdrawn its claim to MM1, returning full control of the domestic terminal to the Federal Government.
Additionally, an exclusivity clause that had blocked other private airport projects, including the proposed Lekki Airport, has been removed from the agreement.
In return, the Federal Government has made three key concessions. It has restored to Bi-Courtney the concession for a stalled five-star hotel and conference centre opposite MM2, with the company given 24 months to complete the project on a revenue-sharing basis with the government.
The government has also agreed to relocate regional flight operations to MM2 to increase traffic and revenue for the terminal, including expanding the apron to accommodate additional aircraft.
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Under the new agreement, the Federal Government will immediately begin earning its share of revenues from MM2 operations.
“This is a very big day for everybody. It was give and take—he profited, and we profited,” Keyamo told newsmen, crediting the resolution to the intervention of President Tinubu and the “spirit of brotherhood” between the negotiating parties.
In a separate development, the FEC also approved the establishment of a Nigerian Aircraft Leasing Company, a private-sector special-purpose vehicle with government backing designed to address the difficulty local airlines face in accessing aircraft.
