FG Settles 20-Year MM2 Dispute, Secures N132bn Debt Write-off

The Federal Executive Council (FEC) on Thursday approved a comprehensive settlement between the Federal Government and Bi-Courtney Aviation Services Limited.

The deal includes the write-off of a N132bn judgment debt with interest dating back to 2009.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed details after the FEC meeting at the State House, Abuja.

He said the agreement involved major concessions from both parties and would unlock the full commercial potential of the Murtala Muhammed Airport Terminal Two (MM2), Lagos.

The settlement ends a two-decade dispute over the terminal’s concession and operations.

“I can happily tell you that this government has resolved that issue once and for all. Council today approved the terms of the agreement we reached with Babalakin to settle all the vexed issues surrounding that airport.

“For the purpose of transparency, may I just mention a couple of the things we agreed upon, because this is going to be public knowledge, and we intend to be very transparent about this,” Keyamo said.

He said the agreement addressed all major areas of contention, including a Supreme Court judgment awarding N132 billion plus interest to Bi-Courtney.

“I told him: nobody is going to pay you that. He wrote it off,” the minister said.

Keyamo said Bi-Courtney also agreed to remove the exclusivity clause that had hindered the development of the proposed Lekki Airport.

He explained that the clause barred other private airport operators within a defined radius of Lagos.

The minister said Bi-Courtney further agreed to hand over the Murtala Muhammed Airport Terminal One (MM1) to the Federal Government.

In return, the Federal Government made key concessions.

It reinstated Bi-Courtney’s concession for an uncompleted five-star hotel and conference centre opposite MM2, with a 24-month completion deadline.

The government will retain a shared stake in the facility.

The Federal Government also approved the relocation of regional flights to MM2 to boost traffic and revenue.

Where necessary, it will fund expansion of the terminal’s apron to accommodate more aircraft.

Keyamo said the agreement would ensure the government begins to earn its due share of revenues from MM2 operations.

He said that a formal signing ceremony involving all parties is expected to hold in Lagos at a date that will be made public.

Meanwhile, FEC also approved the establishment of a Nigerian Aircraft Leasing Company.

Keyamo said the firm would operate as a private sector-driven Special Purpose Vehicle (SPV), with government providing sovereign guarantees.

He said the initiative would address challenges faced by local airlines in accessing long-term aircraft leasing arrangements.

According to him, the move will strengthen Nigeria’s aviation industry and reduce reliance on short-term leasing arrangements.