FG Breaks 20-Year MM2 Deadlock, Approves New Aircraft Leasing Company

The Federal Government has resolved the long-running dispute over the Murtala Muhammed Airport Terminal Two (MM2) in Lagos and approved the creation of a national aircraft leasing company aimed at strengthening local airlines.

Minister of Aviation and Aerospace Development, Festus Keyamo, announced the decisions after a Federal Executive Council (FEC) meeting, describing them as major progress for Nigeria’s aviation sector. He said the council endorsed two key proposals from the ministry.

One of the approvals settles a dispute that has lasted more than two decades between the government and Bi-Courtney Aviation Services Limited, owned by Dr. Wale Babalakin.

The conflict spanned multiple administrations and centered on issues such as control of the domestic terminal (MM1), financial claims, and exclusivity rights.

A major point of contention had been a Supreme Court ruling that awarded Bi-Courtney N132 billion in damages, with interest accruing since 2009.

According to Keyamo, the company agreed to forfeit the claim as part of the settlement.

He also said Bi-Courtney has dropped its claim to MM1, which it had previously argued was covered under its concession agreement.

The government insisted on retaining control of the terminal to avoid placing all domestic aviation operations in Lagos under private management.

Additionally, the exclusivity clause that granted the company sole rights to operate a private airport in Lagos has been removed.

In exchange, the Federal Government will return ownership of the long-abandoned Hotel and Conference Centre opposite MM2 to Bi-Courtney.

The minister noted that the company is now required to complete the project within 24 months.