The Minister of Aviation and Aerospace Development, Festus Keyamo, yesterday, announced that the Federal Executive Council (FEC) has approved the resolution of the long-standing concession dispute surrounding the Murtala Muhammed Airport Terminal Two (MM2) in Lagos, alongside the establishment of a Nigerian aircraft leasing company to support local airlines.

Briefing State House correspondents after the FEC meeting, Keyamo said the council approved two major memos presented by the aviation ministry, describing both decisions as “significant milestones” for the sector.

The minister disclosed that the Federal Government has finally settled the over 20-year dispute with Bi-Courtney Aviation Services Limited, owned by businessman, Dr Wale Babalakin, over the MM2 concession.

According to him, the dispute, which spanned multiple administrations, involved several contentious issues, including the control of the domestic terminal (MM1), financial claims against the government, and exclusivity rights.

Keyamo explained that one of the major sticking points was a Supreme Court judgment which awarded Bi-Courtney N132 billion in damages, with interest accruing from 2009.

He, however, revealed that the concessionaire agreed to waive the claim as part of the negotiated settlement.

“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,” the minister stated.

He added that Bi-Courtney also relinquished its claim to the Murtala Muhammed Airport Terminal One (MM1), which it had argued was included in the original concession agreement.

“We told him to hand back the local airport (MM1) to the federal government. We cannot leave the entire domestic aviation operations in Lagos in private hands. He agreed,” Keyamo said.

On exclusivity, the minister said the clause granting Bi-Courtney sole rights to operate a private airport within Lagos was also removed.

In return, the Federal Government agreed to restore ownership of the long-abandoned Hotel and Conference Centre opposite MM2 to the concessionaire.

Keyamo said the facility, whose construction had stalled for years, must now be completed within 24 months.