FAAN to begin revenue collection, says Keyamo

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

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this yesterday, 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 (FEC) 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)

He said that FAAN is set to resume collecting concession fees from the MMA2 in Lagos following a negotiated settlement

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

In his remarks, Wale Babalakin thanked 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.