Nigeria’s government has signed a settlement with Bi-Courtney over a disputed Lagos airport concession, making concession fees payable to the federal airport operator after years of conflicting claims.
The Oct. 20 agreements, signed in Abuja, cover Murtala Muhammed Airport Terminal Two (MMA2), a privately operated Lagos facility, and related airport property. Aviation Minister Festus Keyamo said the Federal Executive Council approved the settlement on April 30. The Federal Airports Authority of Nigeria (FAAN) also signed the agreements.
Under the settlement as described by Keyamo, the government and FAAN will relinquish specified older claims, including accumulated concession fees. Bi-Courtney will abandon its outstanding claims against the government. Fees under the original concession became payable when the agreements were signed, Keyamo said. The published account of his announcement did not state a fee amount or confirm whether FAAN had received a first payment.
The General Aviation Terminal remains federal property, and FAAN will continue operating it. Keyamo said Bi-Courtney may enlarge MMA2’s apron and handle regional flights within Africa, subject to the settlement’s conditions and the terminal’s capacity.
Separate leases and restored rights cover a hotel and conference center near the airport, Keyamo said. In its 2021 annual report, the Infrastructure Concession Regulatory Commission (ICRC) recorded construction on both projects as stalled.
The concession began with an April 2003 agreement, according to the ICRC. A June 2004 supplement preceded a February 2007 addendum that extended the term from 12 to 36 years. The commission identifies the concession’s duration, an exclusivity clause and FAAN’s operation of the General Aviation Terminal as central to the dispute.
After the settlement framework was approved, the ICRC said removing restrictive provisions could make room for other aviation projects in Lagos, including the proposed Lekki Airport.
