Nigeria’s aviation sector has entered a new phase following the landmark resolution of the long-running dispute between the Federal Government and Bi-Courtney Aviation Services Limited (BASL), operators of the Murtala Muhammed Airport Terminal 2 (MMA2).
The dispute, which lingered for decades and became one of the most controversial public-private partnership battles in Nigeria’s aviation industry, was finally resolved through negotiations led by the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, SAN and backed by the Federal Executive Council.
As part of the settlement, Bi-Courtney agreed to forgo a reported N132 billion Supreme Court judgment debt and relinquished its exclusivity rights over domestic terminal operations in Lagos.
In return, the Federal Government restored the company’s rights to complete and operate its abandoned hotel and conference centre project opposite MMA2 under a revenue-sharing arrangement.
Daily Trust reports that the hotel and conference centre project was a major casualty of the endless battle between the BASL and the Federal Airports Authority of Nigeria (FAAN).
However, with the new agreement, it was learnt that the BASL after completing the project would operate it for 40 years before handing it over to the federal government.
Speaking on the agreement, Keyamo explained that the government could not allow complete control of domestic aviation operations in Lagos to remain in private hands, especially given the strategic and security importance of the airport.
He disclosed that Bi-Courtney accepted the government’s position and agreed to hand back the domestic airport operations while also dropping the exclusivity clause.
The Federal Government, on its part, approved the continuation of the hotel and conference centre project and granted the company 24 months to complete it. Under the arrangement, both parties will share revenues generated from the project and MMA2 operations.
Speaking on the agreement, Keyamo said, ‘So Babalaki wrote off the N132 billion outright. The local airports, that is the MM1, I told him, ‘hand it back to the federal government.’ We cannot leave the entire operations of aviation, local operations in Lagos, which is our heartbeat to a private individual.
‘The government has to have some kind of control. He agreed with us and he handed over that local airport back to the federal government. The issue of exclusivity, we also told him that, look, it is not right, even for security reasons, for you to have complete control over the domestic market in Lagos.
‘He agreed. That exclusivity clause, we removed it. On the other hand, what did we give to him? The hotel and conference centre, we gave it back to him. It’s okay. Complete and run it on a shared basis with the federal government. So it’s not even exclusive.
‘We are still going to benefit from that with the federal government. He has 24 months, under the new agreement, to complete that conference centre and hotel, opposite the MM2, and run it within 24 months, and we told him we will not tolerate any delay again. Let us have a proper hotel, which will also benefit the entire aerotropolis around there.
‘These were the concessions made by Courtney. Now with this agreement, immediately after today, the federal government will now begin to earn its own share from the operations of MM2. So at the end of the day, it was a very good deal for everybody. It was back and forth, you know, give and take and give and take.’
However, mixed reactions have continued to trail the public declaration by the Minister amidst silence from Bi-Courtney which is at the centre of the concession row.
Aviation analyst and former general secretary of Aviation Roundtable, Group Capt. John Ojikutu, rtd, said, ‘I am very concerned , and so should stakeholders be on this matter that had dragged on for almost two decades.’
‘But, it is getting to two weeks after the Minister’s gospel talk, we have not heard from Babalakin or his company, Bi-Courtney on a matter that I believe needs the Supreme Court’s endorsement of any agreements – between the two- against it judgement especially knowing that the two – Keyamo and Babalakin – are SANs.
‘What the successive administrations have done to Bi-Courtney is not different from what they have done, probably still doing to Dangote since the Obasanjo administration left. Note that Sirika (immediate past Minister Hadi Sirika) walked on the same path and did not work.
Designating the Terminal for WA Regional Passengers is not a new innovation by this administration but was already a part of the terminal at inception and completion.’
Immediate past General Secretary of the National Association of Aircraft Pilots and Engineers, Olayinka Abioye, described the resolution as a welcome development, commending the Ministry of Aviation, FAAN and Bi-Courtney for finding common ground after years of hostility.
According to him, the next challenge is ensuring that MMA2 is properly restructured to handle regional operations seamlessly.
He noted that the terminal would require operational upgrades, improved passenger facilitation systems and closer coordination between the terminal operator, airlines and the Nigerian Civil Aviation Authority.
Abioye also warned against excessive charges on airlines and passengers, stressing that aviation investments require patience and long-term planning rather than aggressive profiteering. He welcomed ongoing plans by the government to review aviation taxes and levies, saying such reforms could reduce operational pressure on airlines.
Another concern raised was traffic congestion around MMA2, particularly during peak morning hours. Abioye observed that existing gridlock around the terminal could worsen once regional and domestic flights begin operating simultaneously unless urgent traffic management measures are introduced by BASL and the Federal Airports Authority of Nigeria.
He further emphasized the need for staff retraining, noting that managing regional operations demands higher standards of passenger handling, security coordination and operational efficiency.
He said, ‘Some of us suffered because of these matters, but to the glory of God, we are alive to see the Bola Ahmed Tinubu administration resolve the entire controversy.
‘First and foremost, the Nigeria Civil Aviation Authority, we have also to come back again and look at the entire terminal and structure it in such a way that regional travellers will have seamless facilitation within that terminal. I know that Bi-Courtney has the capacity to do this.’