Lagos Airport Expansion Rekindles AIC–FAAN Land Dispute

The Federal Airports Authority of Nigeria (FAAN) is facing renewed legal pressure from AIC Limited, the company founded by the late business magnate Harry Akande, over disputed land within the ongoing ₦712 billion expansion of Lagos’ Murtala Muhammed International Airport.

The dispute traces back to 1998, when AIC secured a lease to develop a flight path hotel and resort on airport land. FAAN later reclaimed the property, citing its inclusion in the airport’s master plan. This move triggered nearly three decades of litigation across Nigerian courts and international arbitration venues.

In August 2025, AIC’s legal representatives issued a formal notice accusing FAAN of violating a subsisting court order by resuming construction on the contested site. The letter, dated August 19, warned that continued activity could attract contempt proceedings. A Federal High Court had earlier directed both parties to maintain the status quo pending resolution.

Arbitration and Court Rulings

The conflict has produced mixed judicial outcomes. AIC won a London arbitration case in which it was awarded $48 million in damages. While a Nigerian court later set aside the award, the UK Court of Appeal upheld enforcement in 2020, giving AIC partial international recognition of its claim. Despite these rulings, FAAN has continued to pursue its airport redevelopment agenda.

Implications for Infrastructure Development

The controversy highlights broader concerns about project execution and investor confidence in Nigeria’s infrastructure sector. Industry observers argue that prolonged disputes of this nature undermine both legal certainty and the timely delivery of critical public works. For FAAN, the Lagos expansion is a flagship project designed to modernize Nigeria’s busiest airport and enhance passenger capacity. For AIC, the issue centres on contract enforcement and respect for property rights.

Outlook

With FAAN yet to respond publicly to AIC’s latest warning, the stalemate underscores the difficulty of balancing infrastructure priorities with private contractual obligations. Unless resolved, the conflict risks setting a precedent for future disputes between government agencies and private investors engaged in Nigeria’s infrastructure space.