FG and Bi-Courtney end 18-year MMA2 dispute, FAAN to start earning fees
- The Federal Government and Bi-Courtney have signed a settlement ending their long dispute over the MMA2 terminal in Lagos.
- Aviation minister Festus Keyamo said FAAN will now receive concession fees it had not earned for about 20 years.
- The General Aviation Terminal stays with the Federal Government, while Bi-Courtney can expand its apron and run regional flights.
The long-running fight over the Murtala Muhammed Airport Terminal 2 (MMA2) in Lagos has been settled, with the Federal Airports Authority of Nigeria (FAAN) set to start collecting concession fees from the domestic terminal.
Aviation and Aerospace Development Minister Festus Keyamo announced the settlement on Tuesday, after the Federal Executive Council approved the terms on 30 April 2026 under President Bola Tinubu.
Keyamo said FAAN had received nothing from MMA2 in roughly two decades of litigation. "FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes," he said, adding that the authority now begins to earn from the terminal.
What the two sides agreed
The dispute dates back to a concession signed on 24 April 2003 with Bi-Courtney Limited and Stabilini Visinoni Limited to design, build, run and eventually hand over the domestic terminal. The original 12-year term, which started in May 2007, was later stretched to 36 years. Arguments over money and obligations followed, producing court cases under several administrations.
Under the settlement, both sides drop their outstanding claims against each other. Bi-Courtney gives up unsettled financial and other claims, while the government and FAAN release claims for accumulated concession fees and some ancillary payments owed before the deal was signed.
The General Aviation Terminal (GAT), also called the old domestic airport, will remain federal government property and stay under FAAN's operation. Keyamo said this removes a major source of conflict. In return, Bi-Courtney can expand its apron and move regional flights within Africa to MMA2, depending on how much capacity the terminal has.
The deal also covers the abandoned four-star hotel and conference centre near the airport. Leases signed in 2007 were cancelled by FAAN in 2012 over claims that building obligations were not met, and Bi-Courtney went to court. The new arrangement restores rights and sets separate leases for the facilities.
Keyamo said the government keeps oversight of security, access, emergencies and maintenance standards, and described the outcome as a mutual settlement rather than a one-sided concession.
Why it matters to travellers
For passengers, the test will be visible improvements. Keyamo said the public should see "functioning facilities and dependable service", and that this is how the settlement's value will be judged.
Bi-Courtney chairman Wale Babalakin, a Senior Advocate of Nigeria, said the matter had dragged on for more than 18 years with the same facts and issues until the Tinubu administration stepped in. He said the deal would create well-paying jobs and clean up the airport's appearance by finishing abandoned projects.
BusinessDay reported that the financial terms, the timetable for concession payments and detailed implementation plans were not disclosed. The sources also differ slightly on the length of the dispute, with Punch describing nearly two decades and BusinessDay saying more than 18 years.
What happens next: FAAN and Bi-Courtney are expected to work through the revised contract, with concession payments resuming and the hotel and conference centre projects revived. No timeline has been given.
