The Federal Executive Council (FEC) has approved a comprehensive settlement between the Federal Government and Bi-Courtney Aviation Services Limited, bringing an end to a 20-year dispute over the concession of Murtala Muhammed Airport Terminal Two (MM2).

The deal includes the write-off of a ₦132 billion judgment debt, along with accumulated interest dating back to 2009.

Keyamo Announces Breakthrough Deal

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed details of the agreement after the FEC meeting in Abuja.

He described the settlement as a landmark resolution involving significant concessions from both parties.

“For the purpose of transparency, may I just mention a couple of the things we agreed upon… we intend to be very transparent about this,” Keyamo said.

₦132bn Judgment Debt Written Off

A major highlight of the agreement is the resolution of a Supreme Court of Nigeria judgment that awarded ₦132 billion plus interest to Bi-Courtney.

“I told him: nobody is going to pay you that. He wrote it off,” the minister revealed.

Bi-Courtney Makes Key Concessions

Under the settlement, Bi-Courtney agreed to:

• Remove the exclusivity clause that restricted the development of new airports, including the proposed Lekki Airport
• Hand over the Murtala Muhammed Airport Terminal One (MM1) to the Federal Government

The exclusivity clause had previously prevented other private airport operators within a specified radius of Lagos.

Federal Government Offers Incentives

In return, the Federal Government made several concessions, including:

• Reinstating Bi-Courtney’s concession for an uncompleted five-star hotel and conference centre near MM2, with a 24-month completion timeline
• Retaining a shared stake in the facility
• Approving the relocation of regional flights to MM2 to boost passenger traffic and revenue
• Committing to fund expansion of the terminal’s apron where necessary

Keyamo noted that the agreement would enable the government to begin earning its rightful share of revenues from MM2 operations.

Signing Ceremony Planned

A formal signing ceremony involving all parties is expected to take place in Lagos at a later date.

New Aircraft Leasing Company Approved

In a related development, FEC also approved the establishment of a Nigerian Aircraft Leasing Company.

According to Keyamo, the firm will operate as a private sector-driven Special Purpose Vehicle (SPV), with government-backed sovereign guarantees.

The initiative is aimed at addressing challenges faced by local airlines in accessing long-term aircraft leasing options and reducing dependence on costly short-term arrangements.

He added that the move would strengthen Nigeria’s aviation sector and improve operational capacity for domestic carriers.