The Federal Government and terminal concessionaire Bi-Courtney Aviation Services Limited have reached a compromise deal aimed at resolving an 18-year dispute over airport operations, revenue and exclusive rights. The settlement introduces reciprocal concessions, including the release of historical financial claims and changes to the concessionaire’s rights at the Murtala Muhammed International Airport Terminal Two (MM2).
Minister of Aviation and Aerospace Development, Festus Keyamo, explained that the agreement resolves the central point of conflict surrounding the concession. The revised arrangement also provides for apron expansion and the movement of regional African flights to MM2, subject to the terminal’s capacity.
The settlement marks a significant shift from years of litigation towards a negotiated framework. However, its long-term value will depend on implementation, revenue recovery and compliance with the revised contractual obligations.
Compromise Deal Trades Exclusive Rights for New Opportunities
Keyamo said the agreement removes the concessionaire’s exclusive rights under Article 2 of the original concession. It also expressly recognises the General Aviation Terminal (GAT) as belonging to the Federal Government and being operated by the Federal Airports Authority of Nigeria (FAAN).
According to the minister, this resolves a major point of disagreement and gives the government room to plan future airport developments within the revised contractual framework.
“The other important feature is the waiver of the concessionaire’s exclusive rights under Article 2 of the original concession agreement.
“The agreement explicitly recognises that GAT belongs to the Federal Government and is operated by FAAN. This removes the central point of conflict and allows the government to plan future developments within the revised contractual framework.
“In return, the Federal Government has agreed to allow Bi-Courtney to expand its apron and accommodate regional flights within Africa at MM2, to the extent of the terminal’s full capacity.”
The arrangement could reshape how airport facilities and traffic are allocated between the government and the concessionaire. Nevertheless, the practical impact will depend on the approved scope of expansion, operational capacity and applicable regulatory requirements.
FG Waives Historical Claims in Reciprocal Settlement
A major element of the compromise deal is the Federal Government’s agreement to release historical claims against the concessionaire. These include accumulated concession fees and specified ancillary payments arising before the execution of the settlement.
Keyamo said, “On the other hand, the Federal Government has also made concessions. The agreement provides for the release of historical claims against the concessionaire, including accumulated concession fees and specified ancillary payments arising before the agreement was executed.
“The public should understand that this is a reciprocal settlement. Both parties have agreed to surrender certain claims so that their relationship can proceed on clearly defined terms.
“However, settling past claims comes with clear obligations for the future. Upon execution of the agreement, the concessionaire is to commence payment of the concession fees due under the original agreements.
“FAAN has not earned a kobo from MM2 for the last 20 years because of these disputes. Today, FAAN begins to earn its money back.”
The statement points to a potential restoration of revenue flows after years of disagreement. However, the precise financial value of the waived claims, the outstanding liabilities and the projected future payments were not disclosed in the supplied remarks.
Separate Leases, Safety and Oversight Remain Critical
The settlement also addresses restored rights and separate lease agreements covering the hotel and conference centre. Each development has its own obligations, including revenue arrangements and conditions governing the use of airport land.
Keyamo emphasised that passenger protection and airport operations remain essential under the revised arrangement. Government and relevant regulatory authorities will retain their oversight responsibilities, including provisions covering security assets, emergencies and maintenance standards.
These safeguards matter because commercial agreements involving airport infrastructure cannot displace public responsibilities for safety, security and operational continuity.
The revised framework therefore seeks to balance the concessionaire’s investment interests with the government’s authority over airport infrastructure. Its effectiveness will depend on how clearly the parties define their respective responsibilities and enforce the agreed conditions.
Babalakin Credits Tinubu After 18 Years of Dispute
Chairman of Bi-Courtney Aviation Services Limited, Dr. Wale Babalakin, SAN, expressed gratitude to President Bola Ahmed Tinubu for resolving the longstanding disagreement through the aviation ministry.
Babalakin said the dispute had persisted for more than 18 years despite the facts and issues remaining substantially unchanged. He credited the president’s intervention through the minister with helping the parties find a solution.
“We have found a solution to this issue,” Babalakin said, expressing appreciation to the president and thanking Nigerians.
He argued that the settlement would unlock quality employment opportunities, particularly jobs offering attractive remuneration. He also anticipated improvements to the airport’s appearance and renewed progress on abandoned projects.
Babalakin further said the compromise deal could encourage people who feel discouraged when disputes arise with government. His remarks suggested that persistent engagement could produce a negotiated outcome where prolonged disagreement had failed.
Compromise Deal Raises Expectations for Aviation Investment
The agreement’s anticipated benefits extend beyond the immediate parties. Keyamo said the government could expect renewed revenue, while the concessionaire would gain greater investment certainty.
He also pointed to fresh opportunities for employment, goods and commercial activity across the aviation sector.
“What years of litigation could not deliver, constructive engagement has now been possible,” the minister said.
The compromise deal now faces the test of implementation. Its success will depend on whether the revised obligations generate revenue, facilitate airport development and protect the public interest.
For the government, the immediate priority is ensuring that the compromise deal translates into measurable results. For the concessionaire, the revised framework offers an opportunity to expand operations under clearer contractual terms.
After 18 years of disagreement, the compromise deal provides a route towards cooperation. Its ultimate significance, however, will be determined by what both parties deliver under the settlement.
