Nigeria’s aviation sector records a major breakthrough in long-running MMA2 dispute.
The Federal Government has reached a settlement with Bi-Courtney Aviation Services Limited, bringing to a close a nearly two-decade dispute over the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the development after the Federal Executive Council (FEC) meeting, describing it as a decisive step in resolving one of the sector’s most prolonged legal battles.
“I can happily tell you that this government has resolved that issue once and for all.”
The dispute dates back to 2003 when the Federal Government granted Bi-Courtney a concession to build and operate a private terminal following the destruction of the old domestic terminal in Lagos.
Airport terminal infrastructure similar to MMA2 in Lagos.
Although the terminal commenced operations in 2007, disagreements soon arose over concession terms, including revenue rights and facility control, leading to years of litigation.
Court rulings—including a Supreme Court judgment—granted Bi-Courtney substantial claims against the government.
“The Supreme Court said the Federal Government should pay N132bn plus interest… he wrote it off.”
A major highlight of the new agreement is Bi-Courtney’s decision to forgo the N132 billion judgment debt, including accrued interest.
Both parties also agreed to remove the exclusivity clause that had previously restricted the development of other airports within Lagos, a move expected to unlock new infrastructure investments.
Expansion of airport infrastructure expected following new agreement.
As part of the settlement, the Federal Government will return a previously revoked hotel and conference project near MMA2 to Bi-Courtney, with a fresh completion timeline.
The agreement also includes relocating more regional flight operations to MMA2, improving traffic flow and boosting commercial viability.
Additionally, the Federal Government will now begin to earn revenue directly from MMA2 operations under the revised terms.
“At the end of the day, it was a very good deal for everybody. Give and take.”
The resolution of the MMA2 dispute is expected to boost investor confidence in Nigeria’s aviation sector, which has long faced concerns over contract enforcement.
The minister also revealed plans for a national aircraft leasing framework aimed at improving access to aircraft for domestic airlines through private sector investment backed by government guarantees.
(Source: Ministry of Aviation / FEC briefing)
🤔 Question Board
Does this settlement restore confidence in Nigeria’s aviation sector, or will investors remain cautious due to past disputes?
Writing off a N132bn debt is not just a settlement—it’s a signal. It shows that long-standing disputes can be resolved, but also highlights the cost of delayed policy clarity in critical sectors.