Debt waived, new projects revived, and rail investments approved as government moves to reset aviation and infrastructure landscape……
After two decades of legal battles and policy reversals, the Federal Government has finally resolved its long-running dispute with Bi-Courtney Aviation Services Limited over the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos.
The breakthrough agreement, approved at Thursday’s Federal Executive Council (FEC) meeting chaired by President Bola Tinubu, signals a major reset in the concession arrangement that has been a source of controversy since 2003.
Announcing the development, Minister of Aviation and Aerospace Development, Festus Keyamo, said the settlement was the result of extensive negotiations with Bi-Courtney’s chairman, Wale Babalakin, and is designed to bring a definitive end to years of conflict over the terminal’s operations and ownership structure.
One immediate outcome of the deal is the relocation of regional flight operations to MMA2, a move that effectively restores a key aspect of the concession that had previously been withdrawn. Airlines are now expected to begin operating regional routes from the terminal, expanding its role within Nigeria’s aviation network.
The dispute had its roots in disagreements over the scope of the concession, particularly Bi-Courtney’s claim that it included the adjacent MMA1 domestic terminal. That position was upheld by the Supreme Court, which ordered the Federal Government to pay ₦132 billion in damages, along with accrued interest.
However, in a significant concession, Bi-Courtney has agreed to forgo the debt entirely as part of the settlement.
Under the new terms, the company will relinquish any claim to MMA1, returning full control of the facility to the Federal Government. It has also agreed to drop exclusivity clauses that had previously constrained the development of other aviation projects, including the proposed Lekki Airport.
In exchange, the government has reinstated Bi-Courtney’s rights to develop a previously stalled hotel and conference centre project located opposite MMA2. The project will now proceed under a shared arrangement with the Federal Government, rather than as an exclusive concession.
Keyamo noted that the company has been given a strict 24-month deadline to complete the development, warning that further delays will not be tolerated.
The agreement also introduces a revenue-sharing model, allowing the Federal Government to begin earning directly from MMA2 operations, a shift expected to improve public sector returns from the concession.
Describing the deal as a balanced resolution, the minister said both parties made compromises to reach a mutually beneficial outcome.
Beyond aviation, the FEC meeting also delivered major approvals in the transport sector, with three rail projects valued at $2.99 billion receiving the green light.
According to Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the projects include the Lagos Green Line Rail (Phase 1A), Kano Metro Rail, and Kaduna Light Rail systems.
The projects will be financed through the Ministry of Finance Incorporated (MOFI), alongside counterpart funding arrangements, and are expected to improve mobility, boost productivity, and support broader economic growth.
Taken together, the resolutions signal a broader effort by the government to clear legacy disputes, unlock infrastructure investments, and create a more functional and investor-friendly environment across key sectors.
For Nigeria’s aviation industry, in particular, the MMA2 settlement could mark the beginning of a more stable and commercially viable operating framework after years of uncertainty.
