Bi-Courtney Waives N132bn Debt in MMA2 Dispute Settlement

A nearly two-decade-long Nigeria airport concession dispute has concluded following a settlement between the federal government and Bi-Courtney Aviation Services Limited (BASL). The agreement, centered on the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, is poised to redefine private investment in the nation's aviation infrastructure. For years, the protracted legal conflict served as a significant deterrent to investors considering Public-Private Partnership (PPP) models in Nigeria.

The resolution, announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, on April 30, 2026, signals a potential shift in government policy towards honoring and resolving complex contractual disputes. This development could restore confidence among investors critical for modernizing Nigeria's aging airport facilities.

The 20-Year Dispute

The conflict originated from a concession agreement signed in 2003 following a fire that destroyed the old domestic terminal at Murtala Muhammed International Airport in May 2000. Under a Design-Build-Operate-Transfer (DBOT) model, BASL constructed and began operating MMA2, which opened on May 7, 2007. The terminal was widely regarded as a benchmark for modern airport facilities in West Africa.

However, disagreements over the contract's terms quickly led to legal challenges. BASL contended that its concession granted it exclusive rights over all domestic flight operations in Lagos, including the government-run General Aviation Terminal (GAT), now known as MMA1. The Federal Airports Authority of Nigeria (FAAN), the government agency managing public airports, contested this interpretation.

The dispute escalated through the court system, with multiple rulings in favor of BASL. A landmark decision in 2012 by a Federal High Court awarded BASL over N132 billion in damages against FAAN. Despite these legal victories for the concessionaire, the impasse persisted through five successive government administrations, creating a climate of uncertainty for infrastructure investors.

Terms of the Settlement

Under the newly brokered agreement, both parties made significant concessions. According to the announcement from the Federal Executive Council (FEC), BASL agreed to:

• Waive the N132 billion judgment debt and all accrued interest.
• Relinquish its claims over the GAT/MMA1 terminal.
• Abandon its right of first refusal for any future airport projects in Lagos State.

In exchange, the federal government granted BASL several key approvals:

• Permission to commence regional flight operations from MMA2.
• Reinstatement of the concession to build and operate a long-stalled hotel and conference center adjacent to the terminal, with a strict 24-month completion deadline.
• A commitment to expand the terminal's apron to accommodate more aircraft.

This resolution allows the Murtala Muhammed Airport Terminal Two (MMA2) Official Website to finally pursue its original commercial vision, particularly the lucrative regional routes it has long been equipped to handle.

Broader Industry Impact

The settlement carries implications far beyond Lagos. Nigeria faces a significant infrastructure deficit, and the government's limited finances make PPPs essential for airport modernization. The Bi-Courtney saga had severely damaged the country's reputation for upholding such agreements. Amos Akpan, Managing Director of Flight and Logistics Solutions Limited, noted that the resolution demonstrates that long-term PPP disputes can be resolved constructively.

The agreement also has a direct impact on other stakeholders. For the Federal Airports Authority of Nigeria (FAAN), it removes a massive financial liability and secures a revenue-sharing stream from MMA2. For the Lagos State Government and private developers, the removal of BASL's exclusivity clause clears a major legal hurdle for the proposed Lekki-Epe International Airport project.

This move aligns with a broader industry trend towards airport concessions, as seen with the recent 30-year concession approval for Akanu Ibiam International Airport in Enugu and ongoing plans for Port Harcourt International Airport.

Historical Context and Lingering Concerns

The history of aviation concessions in Nigeria has been turbulent. The dispute is reminiscent of the 2012 conflict between FAAN and Maevis Nigeria Limited, where a technology concession was forcefully terminated, leading to litigation. Similarly, the forced relocation of Virgin Nigeria Airways to MMA2 in 2008 highlighted the early political friction surrounding the terminal's exclusivity.

Despite the optimism, challenges remain. Aviation unions, such as the National Union of Air Transport Employees (NUATE), have consistently raised concerns about transparency and potential job losses in concession deals. Furthermore, some analysts argue that the government's failure to pay a Supreme Court-ordered judgment could be viewed negatively by international investors who prioritize the absolute rule of law.

What Comes Next

The focus now shifts to implementation. Several key milestones are anticipated following the settlement:

• Regional flight operations from MMA2 are expected to commence by the third or fourth quarter of 2026.
• BASL is expected to complete the construction of the adjacent hotel and conference center by May 2028.
• The Ministry of Aviation is expected to finalize the concession agreement for Port Harcourt International Airport in late 2026.

Why This Matters

The resolution of the MMA2 dispute is more than the end of a single commercial conflict; it is a critical test of Nigeria's commitment to creating a stable and predictable environment for private infrastructure investment. Its successful implementation could unlock billions in private capital needed to modernize the country's aviation sector, while failure could reinforce long-held investor skepticism. The agreement provides a fresh opportunity to prove that PPPs can be a sustainable solution for Nigeria's infrastructure challenges.