In a landmark development for the Nigeria’s aviation sector, the Minister of Aviation and Aerospace Development, Festus Keyamo has finally and successfully brokered a historic settlement between the Federal Government and Bi-Courtney Aviation Services Limited(BASL).
The resolution of the crisis between the two parties to the concession brings to a close a protracted dispute spanning over two decades.
The settlement of the long-standing disagreement surrounding the Murtala Muhammed Airport Terminal 2 (MMA2) was formally approved today by the Federal Executive Council (FEC), marking a significant turning point in Nigeria’s aviation history.
A statement signed by the Special Adviser On Media and Communications to the Minister, Tunde Moshood, explained that in the terms of the negotiated settlement, Bi-Courtney has agreed to write off the N132 billion Supreme Court judgment debt previously owed by the Federal Government.
In addition, the company has relinquished the exclusivity clause tied to the MMA2 concession and has handed back the Murtala Muhammed Airport Terminal 1 (MM1) to the Federal Government.
In return, the Federal Government has restored to BASL the rights to complete and operate the long-stalled hotel and conference centre project on a mutually beneficial revenue-sharing basis.
Furthermore, plans are underway to relocate regional flight operations to MMA2, with provisions for apron expansion to accommodate increased traffic where necessary.
This strategic move ensures that the Federal Government begins to earn immediate revenue from the revitalised arrangement.
Described as a “win-win” outcome for all parties, the agreement unlocks the full commercial and operational potential of MMA2, positioning it as a central hub for regional aviation.
It also clears longstanding encumbrances that have hindered broader infrastructure development, including the proposed Lekki International Airport project.
Additionally, the deal aligns with forward-looking reforms in the aviation sector, including plans to establish a private-sector-driven aircraft leasing company aimed at supporting Nigerian airlines with access to modern fleets under competitive terms.
The Minister commended all stakeholders for their commitment to dialogue and national interest, emphasising that the resolution reflects the Federal Government’s dedication to fostering a conducive environment for investment, efficiency, and growth in the aviation industry.
He commended the Chairman of BASL, Dr. Wale Babalakin,v who’s a Senior Advocates of Nigeria and member of the Inner Bar with the Minister, as both leveraged their professional relationship and shared commitment to national development to achieve this breakthrough.
This milestone agreement signals a new era of collaboration between the public and private sectors and underscores the administration’s resolve to remove legacy bottlenecks, enhance infrastructure, and reposition Nigeria as a leading aviation hub in Africa.
Recall that the concession crisis between FAAN and BASL began in *early 2003*.
The Federal Government in April 24, 2003; had granted BASL concession to rebuild the old domestic terminal that was destroyed by fire in the uear 2000 under the Build-Operate-Transfer(BOT) concession agreement.
Four years after the construction , the terminal was commissioned Murtala Muhammed Airport Terminal 2(MMA2), Lagos
Not long after the lunch of the terminal on September 8, 2007, crisis started between the Federal Government through the Federal Airports Authority of Nigeria(FAAN).
One of the issues in contention was the scope of the concession agreement
While BASL claimed that the General Aviation Terminal(GAT) was part of the concession agreement, FAAN acting for the Federal Government
-insisted that it was not part of the deal.
Not relenting, BASL also accused FAAN of
violating the agreement by continuing to operate the old MMA1 terminal instead of handing it over to BASL.
But FAAN repeatedly insisted that at no point was the MMA1 concession to BASL
FAAN stood its ground by pulling down the billboards that were strategically erected at MMA1 by BASL and this further made BASL to accuse FAAN of breaching the concession agreement.
Also in dispute was the issue of the duration of the concession.
While BASL said the concession was for 36 years ,FAAN said that what is contained in the agreement is 12 years
These issues and more resulted into several court cases and with both parties not ready to shift ground on their positions.
The concession generated a lot of controversies among stakeholders in the aviation industry.in view of the unresolved issues in the concession.
As the crisis lingers stakeholders in the sector had argued that if the issues were not resolved , it would prevent other potential businessmen or investors from going into concession agreements with the Federal Government in view of the claim by BASL that the Federal Government had breached the agreement they signed.
Besides, they contended that the dispute between the two parties will hamper the growth of the aviation industry as the Federal Government and BASL concession is seen by many as a test case for Nigeria.
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