LAGOS, Nigeria — The Federal Government and Bi-Courtney Limited have formally ended their nearly 20-year MM2 airport dispute over Murtala Muhammed Airport Terminal Two (MM2), signing settlement agreements that also cover an uncompleted hotel and conference centre opposite the airport.
The Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, disclosed the settlement on Tuesday, October 20, 2026, during the signing ceremony. The agreements involve the Federal Government, the Federal Airports Authority of Nigeria (FAAN), Bi-Courtney Limited and Stabilini Visinoni Limited.
How the MM2 airport dispute was resolved
The Federal Executive Council (FEC) approved the negotiated settlement on April 30, 2026. The dispute involved claims and counterclaims that had reached the Supreme Court.
Keyamo said efforts to resolve the dispute began about two years ago under President Bola Tinubu’s directive, followed by sustained negotiations with Bi-Courtney’s chairman, Dr Wale Babalakin, over several complicated legal and commercial disagreements.
The settlement allows the Federal Government to begin receiving its share of revenue from MM2 for the first time in nearly two decades, and paves the way for the airport to handle regional flights within Africa.
In Keyamo’s words: “Today, I was pleased to formally sign the settlement agreements between the Federal Government of Nigeria, the Federal Airports Authority of Nigeria, Bi-Courtney Limited and Stabilini Visinoni Limited over the nearly 20-year disputes involving MM2 domestic airport and the uncompleted hotel and conference centre opposite the airport.”
The signing was attended by directors of the ministry, the managing director of FAAN, the director-general of the Infrastructure Concession Regulatory Commission (ICRC) and other officials. Bi-Courtney was represented by Babalakin and his team.
What Bi-Courtney gave up and gained
Under the terms announced on May 1, 2026, Bi-Courtney agreed to:
- waive ₦132 billion in court-awarded damages against the Federal Government
- relinquish its claim to the old domestic terminal at Murtala Muhammed Airport, which the Supreme Court had ordered handed over to the company
- surrender its exclusive rights to operate private or domestic airports in and around Lagos State
- resume concession fee payments under the agreement dated April 24, 2003, once the settlement is executed
In return, the Federal Government agreed to write off concession fees that built up during the dispute. It also agreed to restore the revoked hotel and conference centre project to Bi-Courtney for completion and operation within 24 months, subject to revenue-sharing arrangements.
The government will also permit regional flight operations at MM2, subject to the terminal’s capacity, and provide extra land for apron expansion to accommodate more aircraft.
Background to the MM2 concession
Bi-Courtney Aviation Services Limited (BASL), a subsidiary of the Bi-Courtney Group chaired by Wale Babalakin, operates MM2 under a Design-Build-Operate-Transfer concession awarded by the Federal Government in 2003. The terminal opened in 2007 as Nigeria’s first privately concessioned airport terminal.
The concession later became the subject of long-running disagreements over contractual obligations, revenue entitlements and operational rights. In July 2021, Bi-Courtney accused FAAN of owing it more than ₦200 billion in lost earnings, disputing a claim by the then aviation minister, Hadi Sirika, that the company owed the government about ₦13 billion.
The Federal Government is also planning to extend rail connectivity from Ikeja to the Murtala Muhammed International Airport, General Aviation Terminal and MM2 to improve passenger movement and access.
