The Federal Government and Bi-Courtney have signed a settlement to resolve the long-running MMA2 dispute
The Federal Government has formally ended a nearly 20-year dispute with Bi-Courtney Limited and Stabilini Visinoni Limited over the concession of Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, paving the way for renewed government revenue, expanded airport operations and the completion of long-delayed hospitality projects.
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Minister of Aviation and Aerospace Development, Festus Keyamo, announced the resolution on Tuesday, 20 October, during the signing of the final concession agreements in Abuja. The settlement replaces years of litigation and competing financial claims with a revised framework for the management and development of the affected airport facilities.
The agreement also addresses unfinished hotel and conference centre buildings near the airport, which have remained incomplete amid a separate dispute over their leases. Their completion could create additional hospitality capacity, support employment and unlock commercial activity around one of Nigeria’s busiest aviation hubs.
Settlement Ends Prolonged Concession Dispute
The dispute originated from a concession agreement signed on 24 April 2003 for the design, construction, operation and eventual transfer of the domestic airport terminal. MMA2 began operations in May 2007 under a private-sector concession arrangement.
Over time, disagreements developed over the concession’s financial terms, the scope of the operating rights and ownership of related airport facilities. The dispute led to multiple court proceedings, including cases that reached the Supreme Court.
The Federal Executive Council approved a settlement framework on 30 April 2026. The final agreements formalise the negotiated resolution and establish clearer financial and operational obligations for the parties.
Under the arrangement, Bi-Courtney will waive outstanding claims against the Federal Government, while the government and the Federal Airports Authority of Nigeria (FAAN) will release specified historical claims against the concessionaire, including accumulated concession fees and related payments arising before the settlement.
The agreement is intended to close the chapter on past disagreements and enable both sides to focus on the operation and development of the facilities.
FAAN to Resume Concession Revenue
One of the main outcomes is the resumption of concession revenue for FAAN from MMA2. Keyamo said the authority had not received concession fees from the terminal for about 20 years because of the dispute.
The revised agreement provides a framework for payments to resume, potentially restoring a revenue stream for the government-owned airport authority.
However, the settlement also releases certain historical financial claims. Its overall fiscal benefit will therefore depend on the value of future concession payments, the obligations relinquished by each party and the parties’ compliance with the new terms.
The arrangement illustrates the financial consequences that prolonged disputes over public infrastructure concessions can create. When contractual disagreements remain unresolved for years, they can delay investment, complicate revenue collection and leave commercially valuable assets underutilised.
Abandoned Hotel and Conference Centre Could Be Completed
The settlement restores rights relating to a hotel and conference centre near MMA2, providing a route towards resolving the separate dispute that stalled their development.
FAAN terminated the relevant leases in April 2012 over alleged failures to meet construction obligations. Bi-Courtney challenged the decision in court, leaving the projects entangled in litigation.
Keyamo urged Bi-Courtney to complete the buildings, arguing that functioning facilities would improve the airport environment and create jobs.
The development could have implications beyond aviation. A completed hotel and conference centre near a major airport could serve business travellers, airline passengers, corporate events and meetings, depending on its eventual facilities, operating model and market positioning.
For Lagos’s hospitality and commercial property markets, the project represents an opportunity to bring stalled assets back into productive use. Its eventual contribution will depend on timely completion, adequate investment, professional management and sustained demand.
MMA2 May Expand Regional Flight Operations
The settlement also allows Bi-Courtney to expand the terminal’s apron and accommodate regional flights within Africa, subject to the facility’s capacity.
Greater regional connectivity could increase passenger traffic and commercial activity at MMA2. If operational capacity and demand support the expansion, additional flights could create opportunities for airport services, transport operators, hospitality businesses and nearby commercial developments.
The revised framework also recognises the General Aviation Terminal as Federal Government property operated by FAAN, addressing a major point of contention in the dispute.
Keyamo said the government would maintain oversight of airport security, emergency arrangements, access and maintenance standards under the new agreement.
Implications for Infrastructure Investment and Real Estate
The resolution could provide a useful example of how negotiated settlements can help unblock infrastructure projects that have remained stalled by contractual disputes.
For investors, prolonged litigation creates uncertainty around ownership, operating rights, revenue and project timelines. Resolving those questions can make it easier to assess development costs, plan capital expenditure and establish clear responsibilities.
The unfinished hotel and conference centre is particularly relevant to real estate because it demonstrates how disputes can prevent completed investment from reaching the market. Bringing such projects into operation could create jobs and support demand for services around the airport.
Nevertheless, a settlement does not itself guarantee successful delivery. Bi-Courtney must fulfil its construction and operating commitments, while government agencies must administer the revised agreements transparently and enforce the agreed obligations.
The outcome will ultimately depend on whether the parties deliver the promised facilities, resume payments and improve airport services.
Implementation Will Determine the Settlement’s Value
The agreement closes a prolonged legal dispute, but its wider economic benefits remain tied to implementation.
The government expects renewed concession revenue, while the concessionaire gains greater certainty over its operating rights and the development of related facilities. Passengers and businesses could benefit from improved services and additional hospitality infrastructure if the projects move forward.
For Nigeria’s infrastructure market, the case reinforces the importance of clear concession agreements, effective contract management and timely dispute resolution. The real test will be whether the settlement produces functioning facilities, reliable revenue and new investment rather than simply bringing years of litigation to an end.
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