FG, Bi-Courtney resolve 18-year MM2 concession dispute

The Federal Government and Bi-Courtney Aviation Services Limited have reached a settlement over the long-standing dispute surrounding the concession of Murtala Muhammed Airport Terminal 2 (MM2), potentially ending more than 18 years of legal battles over the airport facility.

The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, announced the resolution, describing an agreement between the government and the concessionaire that provides for reciprocal concessions and a framework for meeting future obligations.

Under the reported agreement, the parties have agreed to waive historical claims, while the Federal Airports Authority of Nigeria (FAAN) is expected to begin receiving concession fees due under the original agreement.

The settlement also clarifies the status of the General Aviation Terminal (GAT), which is recognised under the agreement as belonging to the Federal Government and operated by FAAN.

The dispute over MM2 has been a longstanding issue in Nigeria’s aviation sector, with implications for airport concession management, government revenue and investor confidence in public-private partnerships.

Another key provision of the agreement allows Bi-Courtney to expand its apron at MM2 and operate regional flights across Africa, subject to the terminal’s full operational capacity and applicable regulatory requirements.

The planned expansion could increase the terminal’s operational scope and create opportunities for additional regional connectivity, although the implementation timeline and specific conditions governing the new operations were not provided in the announcement.

The resolution is also expected to support infrastructure development and job creation while providing greater clarity for the government, FAAN and the private concessionaire on their respective responsibilities.

For FAAN, the reported commencement of concession-fee payments would represent a significant development in the financial relationship between the airport authority and the operator of MM2.

For Bi-Courtney, the agreement provides a clearer framework for future operations and expansion at the terminal, which has been central to the company’s involvement in Nigeria’s airport concession programme.

The settlement also carries broader implications for public-private partnerships in the aviation industry, where disagreements over contractual obligations, concession terms and revenue arrangements can affect investment and infrastructure development.

However, the financial terms of the settlement, the schedule for concession-fee payments and the detailed implementation arrangements were not specified in the information released.