The resolution follows years of litigation over Lagos airport concession, with both parties making major concessions including a debt write-off and revised operational terms.
The Federal Government has reached a settlement with Bi-Courtney Aviation Services Limited, in a move aimed at bringing to a close a nearly two-decade dispute over the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos.
“I can happily tell you that this government has resolved that issue once and for all,” Mr Keyamo said, noting that the council approved the terms of the settlement reached with Bi-Courtney.
The dispute dates back to 2003 when the Federal Government granted a concession to Bi-Courtney, promoted by Wale Babalakin, to build and operate a private terminal after the old domestic terminal in Lagos was destroyed by fire.
The terminal, known as MMA2, commenced operations in 2007. However, disagreements soon emerged over the scope of the concession, including the transfer of additional airport facilities and revenue rights, leading to prolonged litigation.
Court rulings, including a Supreme Court judgment, granted Bi-Courtney significant claims against the government, including compensation.
A major outcome of the new agreement is Bi-Courtney’s decision to forgo a N132 billion judgment debt, including accumulated interest.
“The Supreme Court said the Federal Government should pay him N132bn plus interest… I told him nobody was going to pay that. He wrote it off,” Mr Keyamo said.
The minister also said both parties agreed to remove the exclusivity clause in the original concession, which had restricted the development of other private airports within a defined radius of Lagos.
According to him, the provision had hindered infrastructure expansion, including proposed airport projects within the state.
As part of the settlement, the Federal Government agreed to return a previously revoked hotel and conference centre project near MMA2 to Bi-Courtney, with a new timeline set for completion.
The government also approved the relocation of more regional flight operations to the terminal to improve traffic and commercial viability.
In addition, the Federal Government will now begin to earn revenue from MMA2 operations under the new arrangement.
“At the end of the day, it was a very good deal for everybody. Give and take,” Mr Keyamo said.
The MMA2 dispute has long been regarded as one of the most complex concession disagreements in Nigeria’s aviation sector, raising concerns about contract enforcement and investor confidence.
A formal signing ceremony is expected to take place in Lagos, where full details of the agreement will be made public.
The minister also disclosed that the FEC approved plans to establish a national aircraft leasing framework to support domestic airlines with improved access to aircraft.
He said the initiative, backed by the administration of President Bola Tinubu, would be driven by private sector investment, with government providing guarantees to strengthen the aviation industry.
