A long-running dispute between the Federal Government (FG) and Bi-Courtney Aviation Services Limited (BASL) over the Murtala Muhammed Airport Terminal 2 has been resolved, removing a major barrier to new airport development in Lagos, including the proposed Lekki-Epe International Airport.
The agreement, brokered by the Minister of Aviation and Aerospace Development, Festus Keyamo, ends nearly two decades of legal and operational tensions that had slowed investment and limited growth at Nigeria’s busiest aviation hub.
Under the settlement, Bi-Courtney agreed to forgo a N132 billion Supreme Court judgment debt previously owed by the Federal Government. The company also dropped the exclusivity clause tied to its concession, a provision that had restricted the construction of other airports in Lagos during the concession period.
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Officials say this single move has cleared “longstanding encumbrances” that hindered infrastructure expansion, particularly the Lekki-Epe airport project, which stakeholders now expect to gain fresh momentum.
In return, the Federal Government restored Bi-Courtney’s rights to complete and operate a long-delayed hotel and conference centre within the airport. The minister said the hotel must be delivered within two years under a revenue-sharing arrangement.
Keyamo confirmed that the existing 36-year Design-Build-Operate-Transfer agreement remains valid, running from May 7, 2007, to May 6, 2043, as captured in a 2007 addendum and affirmed by the courts.
He said, “All parties agreed to these terms before we approached the Federal Executive Council.”
The dispute dates back to the original concession agreement signed in 2003 between the Federal Government, through the Federal Airports Authority of Nigeria, and Bi-Courtney. The initial deal approved a 12-year concession for the construction and operation of the terminal, alongside strict provisions on revenue sharing and operational control.
Over time, disagreements emerged over contract terms, remittances and rights, creating uncertainty around the project and discouraging further investment.
Aviation experts say the resolution marks a turning point. Former Director-General of Civil Aviation, Nuhu Musa, described it as a necessary step to unlock stalled projects. He noted that Lagos requires multiple functional airports to handle rising passenger and cargo traffic, adding that the crisis had long delayed such expansion.
He also stressed that any plan to relocate regional flights to the terminal must meet international safety standards, including proper separation of passengers and strict compliance with global aviation rules.
Industry analysts say the agreement will boost investor confidence. Aviation analyst Alex Nwuba said the settlement sends a strong signal that the government is willing to resolve legacy disputes and respect contractual obligations.
He said, “This resolution sets a significant precedent.”
He established that it could encourage both local and foreign investors to commit funds to airport and transport infrastructure.
Another analyst, Chris Amokwu, described the development as a “significant step forward,” adding that it reflects a growing effort to create a stable and predictable investment climate.
Beyond infrastructure, the deal is also expected to improve revenue streams. Experts say completing the hotel and conference centre will strengthen non-aeronautical income, now a key source of earnings for modern airports worldwide.
Plans are also underway to expand apron space at the terminal and relocate regional flight operations there, a move expected to increase passenger traffic and commercial activity.
While Bi-Courtney has yet to issue an official statement, a source close to the company described the agreement as “a win-win for everyone,” and that both parties would formalise the deal soon.
- For the aviation sector, the resolution closes a difficult chapter. More importantly, it opens the door to new projects, signalling a shift from prolonged disputes to practical growth.
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