FG ends 20-year MMA2 dispute, moves regional flights to Lagos terminal

By: Amarachi Okonkwo 

Regional flight operations in Lagos are set for a major shift as the Federal Government moves to resolve a protracted concession dispute involving Bi-Courtney Aviation Services Limited and the operator of the Murtala Muhammed Airport Terminal Two (MMA2).

The development follows the approval by the Federal Executive Council (FEC) of a comprehensive settlement agreement aimed at ending nearly two decades of legal and commercial disagreements tied to the airport’s concession.

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the decision after Thursday’s FEC meeting chaired by President Bola Tinubu. He said the agreement, reached with Wale Babalakin, addresses all outstanding issues dating back to the 2003 concession of MMA2.

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Regional flights to MMA2

A key outcome of the deal is the planned relocation of regional flight operations to MMA2. This effectively expands the terminal’s scope beyond domestic services and resolves a longstanding dispute over Bi-Courtney’s rights under the concession agreement.

The issue traces back to the administration of former President Goodluck Jonathan, during which approval for MMA2 to handle regional flights was withdrawn, despite significant investment by the concessionaire.

With the new agreement, airlines operating regional routes are expected to gradually transition to MMA2, potentially easing congestion at other terminals and improving passenger experience.

N132bn claim waived

One of the most contentious aspects of the dispute was Bi-Courtney’s claim that its concession extended to the adjacent MMA1 domestic terminal. The position had been upheld by the Supreme Court, which ordered the Federal Government to pay approximately N132 billion in damages, along with accrued interest.

However, under the newly approved settlement, Bi-Courtney has agreed to waive the judgment debt. In return, the company will relinquish any claim over MMA1, allowing the Federal Government to retain full control of the terminal.

The agreement also eliminates exclusivity clauses that had previously constrained the development of competing aviation infrastructure, including proposed projects such as the Lekki Airport.

New commercial terms and project revival

As part of the settlement, the Federal Government has reinstated Bi-Courtney’s rights to develop a previously stalled hotel and conference centre project located opposite MMA2.

Keyamo noted that the project will now be executed under a shared arrangement between the government and the concessionaire, rather than as an exclusive venture. Bi-Courtney has been given a 24-month deadline to complete the development.

In addition, the agreement introduces a revenue-sharing framework that will enable the Federal Government to begin earning from MMA2 operations immediately.

Sector implications

The resolution of the MMA2 dispute is expected to improve investor confidence in Nigeria’s aviation sector, particularly in concession-based infrastructure projects that have historically been mired in legal uncertainty.

For airlines and passengers, the relocation of regional flights could signal better terminal utilisation and operational efficiency at Lagos’ busiest aviation hub.

The government’s decision also underscores a broader push to unlock value from existing aviation assets while fostering private sector participation under clearer contractual terms.