The Federal Government and Bi-Courtney Limited have resolved their 18-year dispute over the Murtala Muhammed Airport Terminal Two (MMA2), Lagos, with the agreement on the resumption of concession fee payments and completion of the abandoned hotel and conference centre projects.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Tuesday during the formalisation of the settlement agreement involving the Federal Government, the Federal Airports Authority of Nigeria (FAAN), Bi-Courtney Limited and Stabilini Visinoni Limited.

Keyamo said the settlement followed sustained negotiations aimed at resolving the dispute, which had generated multiple court cases across successive administrations.

He said the Federal Executive Council approved the framework for the negotiated settlement on April 30, 2026, under the leadership of President Bola Tinubu.

According to him, the agreement provides for the reciprocal waiver of outstanding financial and other claims by the parties, allowing them to move forward under clearly defined contractual obligations.

The Minister said Bi-Courtney would resume payment of concession fees due under the original agreement, ending nearly 20 years of disputes over payments to the Federal Airport Authority of Nigeria (FAAN)

“FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from this settlement,” Keyamo said.

He further explained that the agreement also resolved the dispute over the General Aviation Terminal (GAT), also known as the old domestic terminal, which remains the property of the Federal Government and operated by FAAN.

He added that Bi-Courtney had relinquished its exclusive rights under the original concession agreement, while the Federal Government had agreed to allow the company to expand its apron and accommodate regional flights within Africa at MMA2, subject to the terminal’s full capacity.

Keyamo said the settlement also addressed the four-star hotel and conference centre near the airport through restored rights and separate lease agreements specifying the obligations attached to each facility.

He added that the government and relevant regulatory authorities would retain oversight responsibilities for security, emergency response, airport operations and maintenance standards.

The minister said the agreement would enable the government to generate revenue, provide greater investment certainty for the concessionaire and create opportunities for employment and commercial activities in the aviation sector.

He described the resolution as a major achievement of the Tinubu administration, noting that the parties had agreed to negotiate despite years of litigation.

“What years of litigation could not deliver, constructive engagement has now made possible,” he said.

Tracing the history of the dispute, Keyamo said the Federal Government entered into the concession agreement with Bi-Courtney and Stabilini Visinoni Limited on April 24, 2003, for the design, construction, operation and eventual transfer of MMA2.

The project was conceived to replace a domestic terminal damaged by fire in 2000 and provide improved facilities for Nigeria’s growing aviation market.

The concession initially provided for a 12-year term commencing on May 7, 2007, but was subsequently extended to 36 years.

Disagreements later emerged over financial claims, concession benefits and ownership of airport assets, resulting in several court cases, some of which reached the Supreme Court.

A separate dispute arose over the hotel and conference centre after FAAN terminated their leases on April 19, 2012, alleging that construction obligations had not been fulfilled. Bi-Courtney subsequently challenged the termination in court.

Keyamo said he initiated negotiations with Bi-Courtney’s chairman, Dr Wale Babalakin, SAN, after assuming office, with both parties bringing their legal, commercial and technical teams into the process.

He said the negotiations were driven by the recognition that the national interest was more important than prolonged disagreements.

The minister urged Bi-Courtney to complete the abandoned hotel and conference centre, describing the unfinished structures as an eyesore that had remained at the airport for nearly two decades.

He said FAAN and Bi-Courtney must fulfil their respective obligations under the agreement, adding that the public would hold the parties accountable for delivering the expected improvements.

In his remarks, Wale Babalakin thanked President Tinubu and the Minister for resolving the dispute, saying the agreement would create well-paying jobs and improve the appearance of the airport environment.

He said the settlement would also demonstrate that disputes between private investors and government could be resolved through sustained engagement.

Babalakin assured the government and Nigerians that Bi-Courtney would fulfil its obligations under the agreement.