FG, Bi-Courtney Settle Dispute as FAAN Begins Concession Fee Collection

The Federal Airports Authority of Nigeria (FAAN) has begun earning revenue from the Murtala Muhammed Airport Terminal Two (MMA2) after resolving its nearly two-decade dispute with Bi-Courtney Aviation Services Limited.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this in Abuja on Tuesday during the formalisation of the settlement agreement between the Federal Government, FAAN and Bi-Courtney. The framework was approved by the Federal Executive Council under President Bola Tinubu’s administration.

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

The settlement covers the concession agreement for the domestic terminal, MMA2, as well as related leases for the four-star hotel and conference centre near the airport, whose abandoned structures have remained an eyesore for nearly 20 years.

Keyamo described the agreement as a historic development for Nigeria’s aviation sector, saying it followed sustained engagement and difficult negotiations between the government and the concessionaire.

“Let me state clearly at the outset that this resolution was achieved under the administration of President Bola Tinubu. On April 30, 2026, the Federal Executive Council, under the leadership of His Excellency, approved the terms of the negotiated settlement,” he said.

He added that the agreement would enable both parties to move beyond years of litigation and pursue their respective obligations under a revised contractual framework.

The minister said the dispute originated from a concession agreement signed on April 24, 2003, between the Federal Government, acting through the relevant aviation institutions, Bi-Courtney Limited and Stabilini Visinoni Limited for the design, construction, operation and eventual transfer of the domestic terminal.

The agreement was initially for 12 years, commencing May 7, 2007, but was subsequently extended to 36 years.

Over time, disagreements over financial claims and contractual obligations triggered several court cases across successive administrations.

Bi-Courtney maintained that it had been denied benefits promised under the concession, while FAAN asserted its own financial entitlements and responsibility to protect public airport assets.

The dispute also extended to the ownership of the General Aviation Terminal (GAT), known as MMA1, and financial claims involving the Asset Management Corporation of Nigeria.

According to Keyamo, the Supreme Court affirmed that the General Aviation Terminal, also called the Old Domestic Airport, should be handed over to Bi-Courtney Limited.

However, under the new settlement, the General Aviation Terminal will remain the property of the Federal Government and be operated by FAAN.

“The agreement explicitly recognises GAT as belonging to the federal government and being operated by FAAN. This removes a central point of conflict and allows government to plan airport development within the revised contractual framework,” he said.

As compensation, the minister said the Federal Government had agreed to allow Bi-Courtney to expand its apron and move regional flights within Africa to MMA2, subject to the terminal’s full capacity.

Keyamo explained that the agreement provides for reciprocal waivers of outstanding claims by both parties, including historical financial claims and specified ancillary payments.

“The first major feature is the settlement of the historical claims. Upon execution, Bi-Courtney waives all outstanding claims against the government not yet settled, financial or otherwise. FAAN, on the other hand, and the federal government also make concessions as of today.”

He said the government’s concessions included the release of historical claims against the concessionaire, including accumulated concession fees and specified ancillary payments arising before the execution of the agreement.