The resolution between the Federal Government and Bi-Courtney Aviation Services Limited (BASL), the operator of the Murtala Muhammed Airport Two (MMA2) in Lagos, has temporarily brought to an end an impasse that has stalled industry development for almost two decades. If followed to the letter, it would also eliminate the proviso in the agreement between the Federal Government and BASL that prohibits the construction of other airports in the state during the concession period.
Key Terms of the Settlement
Minister of Aviation and Aerospace Development, Festus Keyamo, announced last Thursday that under 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. Additionally, the company has relinquished the exclusivity clause tied to the MMA2 concession and handed back the Murtala Muhammed Airport Terminal 1 (MM1) to the Federal Government.
In return, the Federal Government has restored to Bi-Courtney the rights to complete and operate the long-stalled hotel and conference centre project on a mutually beneficial revenue-sharing basis. The hotel must be completed within two years. Plans are also underway to relocate regional flight operations to MMA2, with provisions for apron expansion to accommodate increased traffic.
Impact on Lekki-Epe Airport Project
The resolution clears longstanding encumbrances that have hindered broader infrastructure development, including the proposed Lekki International Airport project. Former Director-General of Civil Aviation, Nuhu Musa, stated that the reconciliation was a necessary step towards unlocking stalled projects. He explained that the resolution removed a major legal and operational bottleneck that had hindered progress on the proposed Lekki-Epe Airport project.
Industry Reactions
Aviation analyst Alex Nwuba said the resolution was a decisive step towards restoring investor confidence and regulatory clarity. He noted that the dispute exposed deeper structural weaknesses in Nigeria's PPP framework, but the resolution signals to investors that the government is willing to resolve legacy disputes and honour contractual obligations.
Chris Amokwu, another aviation analyst, said the successful resolution would signal a new era for Public-Private Partnerships in Nigeria. He emphasized the importance of maintaining transparent and accountable processes to prevent a recurrence of past disputes.
A source close to BASL expressed delight with the resolution, describing it as a win-win for everyone. The source confirmed that the agreement would be formally signed by both parties very soon.
Concession Period Clarified
Keyamo reiterated that the 36-year Design-Build-Operate-Transfer (DBOT) agreement remains in effect, running from May 7, 2007, to May 6, 2043. All parties agreed to these terms before the matter was tabled at the Federal Executive Council.
Documents obtained exclusively by The Guardian indicated that numerous approvals were granted for concession agreements, including the initial 12-year concession period signed in 2003. An addendum in 2007 extended the period to 36 years, though FAAN insisted there was no FEC approval for the extension.
