The Federal Government and Bi-Courtney Aviation Services Limited have signed a final settlement to end a nearly 20-year dispute over the Murtala Muhammed Airport Terminal Two (MMA2), paving the way for renewed revenue generation and the completion of abandoned hotel and conference centre projects in Lagos.

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this on Tuesday in Abuja during the formal signing of the agreement, saying the settlement would enable the Federal Airports Authority of Nigeria (FAAN) to begin receiving concession fees from MMA2 after years of litigation.

Keyamo said the agreement followed Federal Executive Council approval and the decision of President Bola Tinubu’s administration to resolve the protracted dispute through negotiations rather than continued court battles.

He described the settlement as a reciprocal arrangement under which both parties had agreed to relinquish outstanding claims to establish a framework for future cooperation.

Under the agreement, Bi-Courtney will waive its outstanding claims against the government, while the Federal Government and FAAN will relinquish specified historical claims against the concessionaire, including accumulated concession fees and other related payments arising before the agreement was executed, according to the minister.

Keyamo said the arrangement would allow FAAN to begin generating revenue from MMA2, noting that the authority had not received concession fees from the terminal for about 20 years because of the dispute.

He said the agreement also addressed a major point of contention concerning the General Aviation Terminal, known as MMA1. Under the revised framework, the facility is recognised as belonging to the Federal Government and operated by FAAN.

In return, the minister said the government had agreed to allow Bi-Courtney to expand its apron and accommodate regional flights within Africa at MMA2, subject to the terminal’s capacity.

The settlement also covers separate lease arrangements for a four-star hotel and conference centre located opposite the airport terminal. The unfinished structures have remained abandoned for years.

Keyamo urged Bi-Courtney to fulfil its construction obligations and complete the projects, describing them as potential additions to Nigeria’s aviation and hospitality sectors.

He said the government would work with FAAN and Bi-Courtney to ensure compliance with the agreement, particularly regarding construction, concession payments, airport operations, and the agreed development programme.

The minister added that regulatory oversight, airport security, emergency arrangements, and maintenance standards would remain important under the revised contractual framework.

Recounting the history of the dispute, Keyamo said the original concession agreement was signed on April 24, 2003, for the design, construction, operation, and eventual transfer of the domestic terminal.

The concession commenced on May 7, 2007, initially for 12 years, but was subsequently extended to 36 years.

Over time, disagreements over financial entitlements, concession obligations, and ownership-related issues triggered multiple legal proceedings, some of which reached the Supreme Court.

Keyamo said negotiations involving Bi-Courtney’s chairman, Dr. Wale Babalakin, and the respective legal and technical teams eventually produced an agreed settlement.

He noted that the dispute had been resolved without the Federal Government engaging external lawyers for the negotiations.

Speaking at the event, Babalakin thanked President Tinubu and Keyamo for resolving the dispute, which he said had remained unresolved for more than 18 years despite both parties maintaining their respective positions.

He said the settlement would create employment opportunities, particularly through the completion of the abandoned projects, while improving the appearance of the airport environment.

According to him, the agreement would also encourage investors who have encountered disputes with the government to consider negotiated solutions as a viable means of resolving disagreements.

Babalakin assured the government, the ministry, and FAAN that Bi-Courtney would honour its commitments under the agreement.