Nigeria's FAAN to Start Collecting Concession Revenue from Lagos MMA2 as Government and Bi-Courtney Settle 20-Year Dispute
Why It MattersEnding a two-decade ownership and fee dispute at Lagos's main domestic terminal removes a long-running barrier to investment and lets regional African flights be handled at MMA2.
Nigeria's Minister of Aviation and Aerospace Development, Festus Keyamo, announced on Tuesday that the Federal Government, the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney have settled a dispute that lasted about 20 years. FAAN received no concession fees from MMA2 during that period because of the dispute, and the new agreement lets the agency begin receiving payments under the concession arrangement. The settlement framework was approved by the Federal Executive Council on April 30, 2026.
Under the agreement, Bi-Courtney will waive its outstanding claims against the federal government, while the government and FAAN will relinquish specified historical claims against the concessionaire, including accumulated concession fees and related payments arising before the settlement. Keyamo described it as a reciprocal settlement meant to end years of litigation and set clear financial and operational obligations going forward.
The agreement also settles the dispute over the General Aviation Terminal, known as the old domestic terminal or MM1, which is recognised as federal government property to be operated by FAAN. In return, the government will allow Bi-Courtney to expand its apron and handle regional flights within Africa at MMA2, subject to the terminal's capacity. The settlement also covers the separate dispute over an incomplete four-star hotel and conference centre near the airport, and Keyamo challenged Bi-Courtney chairman Wale Babalakin to complete the abandoned projects.
The dispute dates to April 24, 2003, when the Federal Government signed a concession agreement with Bi-Courtney and Stabilini Visinoni for the design, construction, operation and eventual transfer of the domestic terminal. The concession was initially for 12 years from May 7, 2007, and was later extended to 36 years. Disagreements over financial entitlements, terminal operations and ownership of related facilities led to multiple court cases, including proceedings that reached the Supreme Court. Keyamo said negotiations produced the agreement after years of unsuccessful litigation, and Babalakin said it would unlock investment, create well-paying jobs and improve the airport's appearance.
