Nigeria's Federal Airports Authority of Nigeria (FAAN) is to collect concession fees from Bi-Courtney Aviation Services Limited under Oct. 20 agreements that settle claims over Lagos' Murtala Muhammed Airport Terminal Two (MMA2) and set new operating terms.
The Federal Government, FAAN, Bi-Courtney and Stabilini Visinoni Limited signed the agreements in Abuja. The Ministry of Aviation and Aerospace Development said they also cover the General Aviation Terminal and a nearby hotel and conference center.
Under the ministry's account, Bi-Courtney will give up unresolved claims against the government. In exchange, the government and FAAN will set aside specified claims from before the deal, including accumulated concession fees and some ancillary charges. Bi-Courtney is to make payments due under the original concession from the date the agreements were signed; the ministry did not state a fee rate or the value of claims being released.
The Federal Executive Council approved the framework on April 30. Minister of Aviation and Aerospace Development Festus Keyamo said then that Bi-Courtney had agreed to waive a N132 billion judgment claim, plus interest accruing from 2009. House of Representatives proceedings list an approved outstanding judgment amount of N132,540,580,304.00 in the case but do not specify an interest period.
The deal treats the General Aviation Terminal as federal property, with FAAN continuing to operate it. Bi-Courtney may enlarge its apron and operate regional flights within Africa, subject to the agreement's conditions and operational capacity. Separate leases cover the hotel and conference center.
The concession began with a 2003 agreement covering MMA2's design, construction and operation. Its initial 12-year term started May 7, 2007, and was later extended to 36 years. Disagreements over financial claims, the concession's scope and control of the General Aviation Terminal led to multiple court cases.
Bi-Courtney Chairman Wale Babalakin said the settlement could support investment and job creation and help complete projects that had been abandoned. The ministry announcement gave no date for a first payment or for regional flights to begin.
