FG, Bi-Courtney end 20-year MMA2 dispute, clear path for hotel project

The Federal Government has reached a negotiated settlement with Bi-Courtney Limited and Stabilini Visinoni Limited over the Murtala Muhammed Airport Terminal Two (MMA2) concession in Lagos, bringing an end to a dispute that lasted nearly two decades and generated multiple court cases.

The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the resolution on Tuesday, saying the agreement would allow the Federal Airports Authority of Nigeria (FAAN) to resume collecting concession fees from MMA2 and pave the way for the completion of abandoned hotel and conference centre projects near the airport.

Keyamo disclosed that the settlement framework was approved by the Federal Executive Council (FEC) on April 30, 2026, under President Bola Tinubu’s administration.

The dispute involved disagreements over financial entitlements, terminal operations and ownership of related airport facilities, leading to prolonged litigation across several courts, including the Supreme Court.

A separate legal battle concerned leases for the proposed hotel and conference centre projects, which FAAN terminated in April 2012 over alleged failure to meet construction obligations. Bi-Courtney subsequently challenged the termination in court.

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According to Keyamo, reaching the agreement required sustained negotiations and engagement between the parties.

He said his legal background and that of Bi-Courtney chairman, Wale Babalakin, helped them examine the contentious issues and identify areas of agreement.

The minister also disclosed that the Federal Government did not engage or pay an external lawyer to negotiate the settlement, as the parties relied on their respective legal and technical teams.

Under the agreement, the government and the concessionaire are expected to fulfil their respective financial, construction and operational obligations, while FAAN will provide the necessary cooperation to facilitate implementation.

Keyamo stressed that the settlement would not compromise regulatory oversight, airport security, emergency arrangements or maintenance standards.

He said the ultimate measure of success would be the completion of the outstanding facilities, improved government revenue and better services for passengers and other airport users.

Babalakin, who welcomed the resolution, expressed appreciation to President Tinubu and Keyamo for facilitating an agreement on a dispute he said had remained unresolved for more than 18 years.

He said the settlement would unlock investment opportunities, create well-paying jobs and improve the appearance of the airport environment.

Babalakin added that the agreement could restore investor confidence by demonstrating that disputes between private investors and government agencies could be resolved through negotiation rather than prolonged litigation.

The resolution is expected to provide a framework for the parties to move beyond years of legal confrontation and focus on meeting their contractual obligations.

It also represents a potential boost for airport-related infrastructure development, as the completion of the hotel and conference centre projects could expand services and commercial activities around Lagos’ main international airport.

However, the practical impact of the agreement will depend on the timely implementation of its terms, including the fulfilment of financial commitments, the resumption of concession payments and the completion of the outstanding facilities.