The Federal Government has resolved a long-running airport concession dispute in Lagos and approved a new aircraft leasing initiative aimed at strengthening Nigeria’s aviation sector.
The Federal Government has officially resolved the long-standing dispute over the Murtala Muhammed Airport Terminal Two (MM2) in Lagos, bringing an end to a legal and commercial standoff that lasted more than two decades.
The resolution was approved by the Federal Executive Council (FEC), with Minister of Aviation and Aerospace Development, Festus Keyamo, confirming that the agreement was reached with Bi-Courtney Aviation Services Limited, the concessionaire of the terminal.
According to the government, the settlement includes major concessions from both parties. Bi-Courtney agreed to waive a ₦132 billion judgment debt previously awarded by the Supreme Court, relinquish claims over the Murtala Muhammed Airport Terminal One (MM1), and drop exclusivity rights that had restricted other airport developments in Lagos.
In return, the Federal Government restored the concession of an abandoned hotel and conference centre project to the company, with a 24-month completion deadline. Authorities also confirmed that regional flight operations would be moved to MM2, while the government will now begin to earn revenue from the terminal’s operations under the new agreement.
Officials described the deal as a “give-and-take” resolution that unlocks the full commercial potential of the terminal and resolves key issues that had hindered the aviation sector for years.
In a related development, FEC also approved the establishment of a Nigerian aircraft leasing company. The proposed firm will operate as a private sector-driven Special Purpose Vehicle (SPV), with government backing through guarantees rather than direct funding.
The initiative is designed to address persistent challenges faced by Nigerian airlines in accessing aircraft, reducing reliance on foreign lessors and improving operational stability across the industry.
The MM2 dispute dates back to the early 2000s following a concession agreement that became entangled in legal battles over ownership rights, financial claims, and operational control. The conflict had stalled investment and limited the terminal’s full utilisation for years.
Nigeria’s aviation sector, largely driven by private operators, has also struggled with aircraft leasing constraints, contributing to frequent disruptions and limited fleet capacity.
Authorities say both decisions are expected to boost investor confidence, improve airline operations, and mark a new phase of stability and growth in Nigeria’s aviation industry.