FG and Bi-Courtney settle 20-year MMA2 dispute, FAAN to earn revenue again
- The Federal Government and Bi-Courtney have signed a final deal ending a dispute over Lagos MMA2 terminal.
- Bi-Courtney gave up a ₦132 billion claim, and FAAN will now collect concession revenue after about 20 years.
- The agreement also covers the old domestic terminal, a hotel and conference centre, and regional flights.
The long fight over who controls and profits from Murtala Muhammed Airport Terminal Two (MMA2) in Lagos is over. The Federal Government and Bi-Courtney Aviation Services Limited signed a final settlement on Tuesday, closing a dispute that began with a concession signed in 2003.
Aviation Minister Festus Keyamo announced the deal in Lagos. He said the Federal Executive Council approved it on April 30, 2026, under President Bola Tinubu.
For ordinary travellers and the government, the key change is money. The Federal Airports Authority of Nigeria (FAAN) has not received concession payments from MMA2 for about 20 years because of the court battles. Under the new terms, FAAN will start earning from the terminal again.
“FAAN had not earned a kobo from MM2 for the last 20 years because of disputes. Today FAAN begins to earn its money from that settlement,” Keyamo said.
Channels TV reported that Bi-Courtney wrote off a ₦132 billion judgment debt and interest claim against the government. In exchange, the government removed exclusive clauses and restored certain concessions.
What each side gave up
BusinessDay reported that Bi-Courtney will drop its outstanding claims against the government. In return, FAAN and the Federal Government will release their own historical claims, including accumulated concession fees and some ancillary payments from before the agreement.
The deal also settles the quarrel over the General Aviation Terminal, known as MMA1 or the old domestic airport. The new framework recognises the terminal as Federal Government property operated by FAAN. Bi-Courtney, for its part, can expand its apron and handle regional flights within Africa at MMA2, as long as the terminal has capacity.
The settlement also restores rights and separate leases for a four-star hotel and conference centre near the airport. Both buildings have stood unfinished for years. Keyamo asked Bi-Courtney chairman Wale Babalakin to complete them.
Babalakin thanked Tinubu and Keyamo for ending a dispute he said had dragged on for more than 18 years. He said the deal would create jobs and bring back investors who had been scared off by long fights with government agencies.
“It is going to unleash a number of quality jobs into the system immediately. I mean quality jobs,” he said.
Keyamo also spoke about plans for an aircraft leasing company backed by international investors, to help Nigerian airlines that struggle to compete with foreign carriers.
What happens next
The agreement now depends on delivery. The parties must follow the agreed construction programme, meet their financial obligations and complete the legal and operational steps. Keyamo said the deal will be judged by finished facilities and better service, not by signatures on paper.
