The Minister of Aviation and Aerospace Development, Festus Keyamo, announced yesterday that the Federal Executive Council (FEC) has approved the resolution of the long-standing concession dispute surrounding the Murtala Muhammed Airport Terminal Two (MM2) in Lagos. Additionally, the council greenlit the establishment of a Nigerian aircraft leasing company aimed at supporting local airlines.
Key Decisions Announced
Briefing State House correspondents after the FEC meeting, Keyamo stated that the council approved two major memos presented by the aviation ministry. He described both decisions as “significant milestones” for the sector.
Settlement of MM2 Dispute
The minister disclosed that the Federal Government has finally settled the over 20-year dispute with Bi-Courtney Aviation Services Limited, owned by businessman Dr. Wale Babalakin, regarding the MM2 concession. According to Keyamo, the dispute spanned multiple administrations and involved several contentious issues, including control of the domestic terminal (MM1), financial claims against the government, and exclusivity rights.
One of the major sticking points was a Supreme Court judgment awarding Bi-Courtney N132 billion in damages, with interest accruing from 2009. Keyamo revealed that the concessionaire agreed to waive this claim as part of the negotiated settlement. “The first thing we told him was to write off the N132 billion plus interest. Nobody is going to pay that, and he agreed and wrote it off,” the minister stated.
Concession Terms Revised
Bi-Courtney also relinquished its claim to Murtala Muhammed Airport Terminal One (MM1), which it had argued was included in the original concession agreement. “We told him to hand back the local airport (MM1) to the federal government. We cannot leave the entire domestic aviation operations in Lagos in private hands. He agreed,” Keyamo said.
On exclusivity, the minister said the clause granting Bi-Courtney sole rights to operate a private airport within Lagos was also removed. In return, the Federal Government agreed to restore ownership of the long-abandoned Hotel and Conference Centre opposite MM2 to the concessionaire. Keyamo noted that the facility, whose construction had stalled for years, must now be completed within 24 months.
Aircraft Leasing Company Approved
In addition to resolving the concession dispute, the FEC approved the establishment of a Nigerian aircraft leasing company. This initiative is designed to support local airlines by providing access to aircraft, thereby reducing operational costs and improving efficiency in the aviation sector.
