The Federal Government has finalised a sweeping concession resolution cancelling a ₦132 billion liability, granting regional operational rights, and imposing a strict 24-month completion deadline on stalled MM2 infrastructure. Minister of Aviation and Aerospace Development Festus Keyamo confirmed Federal Executive Council approval of the agreement with Bi-Courtney Aviation Services Limited, ending a dispute that has lingered for two decades.
The concession resolution immediately resets financial exposure, operational control, and infrastructure delivery at Murtala Muhammed Airport Terminal Two. However, the actual concession period, central to the original dispute, remains undefined, leaving a critical gap in an otherwise far-reaching settlement.
The concession resolution also restores immediate revenue flow to the state from terminal operations. Keyamo revealed that, “all of this was happening… MMA2 was not paying anything on that Terminal. Federal government was supposed to be gaining or earning something from the concession.” However, under the new terms, “immediately after today, the federal government will now begin to earn its own share from the operations of MM2,” marking a decisive financial turnaround within the broader concession resolution.
Concession Resolution Locks ₦132bn Write-Off, 24-Month Deadline
Minister Keyamo framed the concession resolution as a decisive fiscal and operational reset. He stated, “I told him, write off the 132 billion plus interest. Nobody’s going to pay you that. He wrote it off.” Therefore, the government eliminates a substantial liability arising from a Supreme Court judgement tied to the concession dispute.
In addition, the agreement compels Bi-Courtney to complete the long-abandoned hotel and conference centre within 24 months. Keyamo stressed urgency, warning that delays would no longer be tolerated. This timeline anchors the concession resolution in measurable deliverables rather than open-ended commitments.
Government Regains MM1, Ends Exclusivity
A major pillar of the concession resolution is the return of the General Aviation Terminal, MM1, to federal control. Keyamo explained, “We cannot leave the entire operations of aviation, local operations in Lagos… to a private individual.” Therefore, the government restores strategic oversight over Nigeria’s busiest domestic aviation hub.
“ He agreed with us and he handed over that local airport back to the federal government. The issue of exclusivity, we also told him that, look, it is not right, even for security reasons, for you to have complete control over the domestic, you know, market in Lagos.”
Meanwhile, the removal of the exclusivity clause represents a structural shift. Previously, Bi-Courtney claimed sole rights to operate private airports within Lagos. With that clause now eliminated, new projects, including Lekki Airport, can proceed without legal encumbrance, thereby expanding sector capacity.
Regional Operations Concession Emerges as Key Trade-Off
A central but less publicised element of the concession resolution is the granting of broader regional operational latitude to Bi-Courtney. This component, according to Minister Keyamo, formed part of the balancing concessions offered by government to secure compliance on critical issues.
“The federal government also agreed to move regional flights to his airport there, to the MM2. Because over the years, we had actually agreed for some time now. They had approval to run regional flights from that airport. They had the permission to run regional flights from that airport. And so, we are now moving regional flights as much as he can accommodate to that airport. These are just the give and take, give and take that we did. And then we will run regional flights from there as much as the place can take.”
“And in case his apron, I think the apron will not be enough to contain some aircraft, we will expand his apron. So instead of giving him that airport, we agreed to expand his apron at MM2. So, we are going to expand that apron so that he can have more spaces to park his plane.”
Keyamo further emphasised that these concessions were carefully calibrated, adding, “We sat down in the spirit of brotherhood… and we looked at all the issues, and we sought a way out of the problem.” This suggests that regional considerations were integral to achieving a mutually acceptable settlement under the concession resolution framework.
Bi-Courtney Concessions Highlight Scale of Compromise
The concession resolution reflects significant sacrifices by Bi-Courtney, led by Wale Babalakin. Beyond writing off ₦132 billion, the company relinquished its claim over MM1 and accepted the removal of exclusivity rights.
Keyamo acknowledged this, stating, “We thank him for his patriotism because we actually made him to make all of those concessions.” However, he also criticised legacy agreements, describing them as problematic and binding on successive governments. Therefore, the resolution seeks to rebalance contractual inequities without undermining private sector participation.
Federal Government Offers Shared Asset, Regional Flexibility
On its part, the Federal Government reinstated Bi-Courtney’s rights to the hotel and conference centre under a shared arrangement. Keyamo explained, “Complete and run it on a shared basis with the federal government.” This ensures that the asset generates joint value rather than exclusive benefit.
In addition, the regional operations concession complements this asset-based incentive. It provides Bi-Courtney with operational room within the broader aviation landscape, while government retains control over core infrastructure such as MM1. Therefore, the concession resolution blends asset recovery with strategic flexibility.
Unresolved Concession Period Raises Fresh Questions
Despite the sweeping scope of the concession resolution, the duration of the concession remains unclear. Historically, the agreement evolved into a disputed extension of up to 36 years, forming the basis of prolonged litigation.
However, Minister Keyamo did not specify the final tenure under the revised terms. This omission introduces uncertainty regarding revenue timelines, compliance obligations, and long-term planning. Therefore, clarity on duration will be critical to fully stabilising the concession framework.
Transparency Pledge and Sector Implications
Minister Keyamo underscored transparency as central to the concession resolution. He said, “For the purpose of transparency… we intend to be very transparent about this.” Therefore, stakeholders anticipate detailed disclosures on revenue sharing, compliance frameworks, and operational boundaries.
Meanwhile, the resolution signals a pragmatic shift in Nigeria’s aviation policy. It balances public control with private investment, resolves legacy liabilities, and introduces enforceable timelines. However, until the concession duration is clarified, the full impact of the concession resolution will remain only partially realised.
