Aviation: Tinubu Ends 20-Year MMA2 Dispute with Babalakin After Four Administrations

By Editor

The All Progressives Congress (APC) led Federal Government has resolved its nearly two-decade dispute with Bi-Courtney Limited and Stabilini Visinoni Limited over the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, ending litigation that spanned the administrations of Presidents Olusegun Obasanjo, Umaru Musa Yar’Adua, Goodluck Jonathan, Muhammadu Buhari and Bola Ahmed Tinubu.

Formally concluded under the Bola Ahmed Tinubu administration in October 2026, the settlement is expected to restore government revenue from the concession, facilitate completion of abandoned hotel and conference centre projects, and support expanded regional flight operations.

Minister of Aviation and Aerospace Development Festus Keyamo announced the resolution, describing it as a breakthrough in one of Nigeria’s longest-running aviation concession disputes. The Federal Executive Council approved the settlement framework on April 30, 2026.

Under the agreement, Bi-Courtney, chaired by Senior Advocate of Nigeria (SAN) Wale Babalakin, will waive its reported ₦132 billion judgment debt claim against the Federal Government, including accumulated interest. The government and the Federal Airports Authority of Nigeria (FAAN) will also relinquish specified historical claims against the concessionaire.

FAAN will resume collecting concession fees from MMA2 under a revised contractual framework, with both parties assuming new financial and operational obligations.

“FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from that settlement,” Keyamo said.

On April 24, 2003, the Federal Government signed a concession agreement with Bi-Courtney and Stabilini Visinoni for the design, construction, operation and eventual transfer of a new domestic airport terminal in Lagos. The project followed the destruction of the former domestic terminal by fire in 2000 and was intended to provide modern facilities through private investment.

The agreement provided for a 12-year concession beginning May 7, 2007, with construction expected to take about 18 months. It also covered domestic flight operations, revenue generation and the concessionaire’s operational rights. The government was expected to route scheduled domestic flights through MMA2, while FAAN would receive a percentage of the terminal’s annual turnover.

Disagreements over these provisions emerged as the project progressed.

MMA2 began operations in 2007 under President Umaru Musa Yar’Adua. Although it became an important addition to Lagos’s aviation infrastructure, disputes over concession rights, financial entitlements and government obligations persisted.

Bi-Courtney alleged that the Federal Government had breached key provisions, including those concerning the General Aviation Terminal, commonly known as the old domestic terminal or MM1. The company said the government’s failure to meet its obligations undermined the commercial basis of its investment.

The government and FAAN disputed Bi-Courtney’s interpretation of their contractual rights and responsibilities, leading to prolonged litigation.

Under President Goodluck Jonathan, Bi-Courtney continued pursuing claims over alleged breaches of the concession agreement. In March 2009, the Federal High Court in Abuja ruled in the company’s favour in a case involving the Federal Government. Further proceedings, including FAAN challenges and appeals, eventually reached the Supreme Court.

A separate dispute concerned a four-star hotel and conference centre Bi-Courtney was authorised to develop near MMA2. In April 2012, FAAN terminated the leases, citing failure to meet construction obligations. Bi-Courtney challenged the decision, leaving the unfinished structures as a visible symbol of the wider dispute.

The parties also disagreed over the concession’s exclusivity provisions. Bi-Courtney argued that they restricted competing private aviation infrastructure within a specified radius of Lagos, affecting projects such as the proposed Lekki Airport.

The dispute remained unresolved throughout President Muhammadu Buhari’s 2015–2023 administration. MMA2 continued operating, but disagreements over concession rights, financial claims, airport facilities and government obligations persisted.

The case also raised broader questions about public-private partnerships, contract enforcement and relations between government agencies and private investors. Keyamo said the Supreme Court outcome left the government facing a reported ₦132 billion judgment debt in Bi-Courtney’s favour, with interest accruing from 2009.

The potential liability and unresolved operational disputes became central to the eventual negotiations.

President Bola Ahmed Tinubu’s administration pursued a negotiated settlement rather than further litigation. Keyamo said sustained discussions with Babalakin and the parties’ legal and technical teams produced an agreement addressing the main outstanding issues.

Bi-Courtney will waive the reported ₦132 billion judgment debt claim, including interest. FAAN will resume collecting concession fees, while both sides will relinquish specified historical claims.

The settlement recognises the General Aviation Terminal, or MM1, as federal government property to be operated by FAAN. It also removes the exclusivity clause restricting other private airport projects in the designated Lagos area, potentially clearing the way for developments such as Lekki Airport.

In return, the Federal Government has restored Bi-Courtney’s rights over the abandoned hotel and conference centre under revised arrangements that provide for government participation in their operations. Bi-Courtney has 24 months to complete the facilities.

The government will also facilitate expansion of MMA2’s apron to accommodate more aircraft and additional regional flights within Africa, subject to capacity and operational requirements. Keyamo said safety, security, regulatory oversight, emergency arrangements and maintenance standards would remain protected.

He urged Babalakin to complete the abandoned buildings, calling them an eyesore for airport users.

“Everybody drives through there every day, so I am saying it before the camera: anytime you are driving through, look whether Babalakin is building that place and raise the alarm and call me if I am not there,” Keyamo said.

He said completion would improve the airport environment, create jobs and unlock commercial opportunities. He also disclosed that the Federal Government did not engage or pay an external lawyer for the negotiations, relying instead on its legal and technical teams.

At the formalisation ceremony, Babalakin thanked President Tinubu and Keyamo for resolving the dispute. He said the agreement would unlock investment, create well-paying jobs and improve the airport environment.

He also expressed hope that the settlement would encourage investors in disputes with government to pursue negotiated solutions rather than rely solely on prolonged litigation.

The agreement closes a contentious chapter in Nigeria’s aviation concession history that began under Obasanjo, continued through the Yar’Adua, Jonathan and Buhari administrations, and ended under Tinubu.

Its success will depend on the parties meeting their obligations, FAAN sustaining revenue collection, the hotel and conference centre being completed within 24 months, and airport users receiving improved facilities and services.