The Federal Government and Bi-Courtney Aviation Services Limited have formally resolved their nearly two-decade dispute over the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, paving the way for the resumption of concession payments and the completion of abandoned airport facilities.

The agreement was signed on Tuesday, October 20, 2026, in Abuja, bringing an end to years of legal battles involving the Federal Government, the Federal Airports Authority of Nigeria (FAAN) and the private concessionaire.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed that the settlement followed extensive negotiations between the parties after the Federal Executive Council approved a resolution framework on April 30, 2026.

The agreement involves the Federal Government, FAAN, Bi-Courtney Limited and Stabilini Visinoni Limited, with provisions covering the operations of MMA2, the General Aviation Terminal and associated hotel and conference centre projects.

According to Keyamo, both sides agreed to withdraw outstanding financial and other claims as part of a compromise aimed at restoring a functional commercial relationship.

Under the arrangement, Bi-Courtney will resume payment of concession fees to FAAN, while the government will release certain historical claims against the company, including accumulated fees and specified payments arising before the execution of the agreement.

The minister explained that the resolution would enable FAAN to generate revenue from MMA2 after years of disagreement over the concession arrangement.

He also confirmed that the General Aviation Terminal, commonly known as the old domestic terminal, would remain under federal ownership and continue to be operated by FAAN.

As part of the settlement, Bi-Courtney will be permitted to expand its aircraft parking apron and accommodate regional flights within Africa from MMA2, subject to agreed conditions and operational capacity.

The agreement also addresses the abandoned four-star hotel and conference centre projects located near the airport through restored development rights and separate lease arrangements.

Keyamo urged the concessionaire to complete the projects, which have remained unfinished for several years, while assuring that relevant government agencies would retain oversight of airport security, emergency operations and maintenance standards.

The dispute dates back to the concession agreement signed on April 24, 2003, for the design, construction, operation and eventual transfer of MMA2.

The arrangement initially provided for a 12-year concession period beginning in May 2007, but the tenure was subsequently extended to 36 years.

Disagreements over concession rights, financial obligations and airport facilities later resulted in prolonged litigation, with some cases reaching the Supreme Court.

Speaking at the agreement-signing ceremony, the Chairman of Bi-Courtney Limited, Wale Babalakin, commended President Bola Tinubu and the aviation minister for facilitating the settlement.

Babalakin expressed confidence that the agreement would encourage investment, create employment opportunities and improve the airport environment.

The government said the resolution was expected to strengthen investor confidence and support further development of Nigeria's aviation infrastructure.

With the agreement now formalised, attention is expected to shift towards the implementation of its provisions, including concession fee payments, proposed regional flight operations and the completion of the outstanding development projects.