20 Years After, FAAN Begins Earning from MMA2 as FG, Bi-Courtney Settle

By Nathaniel Irobi

The Federal Airports Authority of Nigeria (FAAN) will finally start collecting concession fees from the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, bringing an end to a nearly 20-year dispute that had kept the agency from earning a kobo from the terminal.

Minister of Aviation and Aerospace Development Festus Keyamo announced the resolution of the protracted dispute between the federal government, Bi-Courtney Limited and Stabilini Visinoni Limited, following a settlement framework approved by the Federal Executive Council (FEC) on April 30, 2026, under President Bola Tinubu’s administration.

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

How the Dispute Began

The crisis dates back to April 24, 2003, when the federal government signed a concession agreement with Bi-Courtney and Stabilini Visinoni to design, build, operate and eventually transfer the domestic terminal. The deal was initially for 12 years from May 7, 2007, but was later extended to 36 years.

Differences over financial entitlements, terminal operations and ownership of related airport facilities pushed the parties into years of litigation, dragging through multiple courts up to the Supreme Court. A separate row erupted over the leases for a four-star hotel and conference centre, which FAAN revoked in April 2012, accusing the concessionaire of failing to meet construction obligations — a move Bi-Courtney challenged in court.

What the Settlement Entails

Both sides have now agreed to drop their historical claims against each other. Bi-Courtney is waiving its outstanding claims against the federal government, while the government and FAAN are relinquishing accumulated concession fees and related payments owed before the settlement.

Keyamo described the deal as a reciprocal arrangement that replaces years of litigation with a fresh contractual relationship built around clear financial and operational obligations.

The agreement also settles the long-running fight over the General Aviation Terminal, also known as the old domestic terminal or MM1. The terminal is now recognised as federal government property operated by FAAN. In exchange, Bi-Courtney is permitted to expand its apron and handle regional flights within Africa at MMA2, subject to the terminal’s capacity.

The settlement further restores rights over the abandoned four-star hotel and conference centre. Keyamo charged Bi-Courtney’s Chairman, Wale Babalakin, a Senior Advocate of Nigeria, to ensure the buildings are completed, calling them an eyesore.

“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,” the minister said, noting that completing the facilities would improve the airport environment and create jobs.

No External Lawyers, No Extra Cost

Keyamo revealed that the negotiations took sustained engagement, adding that his legal background and Babalakin’s helped both sides find common ground. He said the government did not hire or pay any external lawyer, relying instead on the legal and technical teams of both parties.

He assured that regulatory oversight, airport security, emergency arrangements and maintenance standards remain protected under the agreement, stressing that the settlement’s success will be judged by the completion of the facilities, renewed government revenue and better services for airport users.

Babalakin Speaks

Babalakin, who spoke at the event, thanked Tinubu and Keyamo for brokering the deal, which he said had remained unresolved for more than 18 years. He expressed confidence that the settlement would unlock investment, create well-paying jobs and improve the airport’s surroundings.

He also said the agreement could encourage investors who had been discouraged by disputes with the government to consider negotiated settlements as a viable way of resolving disagreements.