The Federal Airports Authority of Nigeria (FAAN) is set to begin receiving revenue from the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos following a settlement that resolves a longstanding dispute between the Federal Government and Bi-Courtney Aviation Services Limited.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the development on Tuesday during the formal signing of a settlement agreement involving the Federal Government, FAAN and Bi-Courtney.
Keyamo said the agreement would enable FAAN to begin receiving revenue from the terminal after nearly two decades of disputes over financial obligations and the terms of the concession arrangement.
“FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from that settlement,” the minister said.
The settlement, which was previously approved by the Federal Executive Council under President Bola Tinubu, provides for the parties to waive historical claims against one another.
Under the arrangement, Bi-Courtney agreed to drop outstanding claims against the Federal Government, while the government and FAAN agreed to relinquish past claims, including accumulated concession fees.
The agreement is expected to establish a clearer financial and operational framework for the management of the airport terminal and reduce the risk of further disputes between the parties.
MMA2 is operated by Bi-Courtney under a concession arrangement and serves domestic passengers travelling through Lagos, one of Nigeria’s busiest aviation hubs.
The terminal has been the subject of a prolonged disagreement involving the concessionaire and government authorities over contractual obligations, fees and other aspects of the project.
The resolution could mark a significant development in the relationship between the government and the private operator, particularly in the management of airport infrastructure through public-private partnerships.
Beyond the settlement of financial claims, the agreement also provides a pathway for the completion of previously stalled hotel and conference centre projects near the airport.
The projects are expected to complement existing aviation infrastructure and potentially expand commercial activities around the airport, although their completion timelines were not specified in the information provided.
For FAAN, the reported commencement of revenue collection could provide an additional income stream to support its responsibilities in managing and maintaining federal airport infrastructure.
For Bi-Courtney, the settlement offers an opportunity to move forward with a clearer understanding of its obligations and relationship with the government.
The agreement comes as Nigeria continues to explore ways to improve airport infrastructure, strengthen revenue generation and attract private investment into the aviation sector.
While the settlement resolves a major point of contention, its long-term impact will depend on how effectively the parties implement the agreement, meet their respective obligations and complete the projects covered by the arrangement.
