The Federal Executive Council (FEC) has approved the resolution of the long-standing concession dispute surrounding the Murtala Muhammed Airport Terminal Two (MM2) in Lagos, alongside the establishment of a Nigerian aircraft leasing company to support local airlines.
Minister of Aviation and Aerospace Development, Festus Keyamo, told newsmen that FEC approved two major memos presented by the aviation ministry, describing both decisions as “significant milestones” for the sector.
He disclosed that the federal government has finally settled the over 20-year dispute with Bi-Courtney Aviation Services Limited, owned by businessman Wale Babalakin, over the MM2 concession.
According to him, the dispute involved several contentious issues, including control of the domestic terminal (MM1), financial claims against the government, and exclusivity rights.
“As you all know, there has been a long-standing dispute between the concessionaire and the federal government over MM2. Today, I can happily tell you that this government has resolved that issue once and for all,” he said.
Keyamo revealed that Bi-Courtney agreed to write off a N132 billion judgment debt awarded by the Supreme Court, including accrued interest.
“The first thing we told him was to write off the N132 billion plus interest. Nobody is going to pay that, and he agreed and wrote it off,” the minister stated.
He added that the concessionaire also relinquished its claim to MM1 and agreed to remove exclusivity rights.
The federal government, on its part, restored ownership of the abandoned Hotel and Conference Centre opposite MM2 to Bi-Courtney, with a directive to complete it within 24 months.
Keyamo also announced the approval of a Nigerian aircraft leasing company structured as a Special Purpose Vehicle (SPV), driven by private sector investment.
“The major problem of private operators in Nigeria has been access to aircraft and equipment,” he said.
He explained that the initiative would reduce dependence on foreign lessors and improve operational stability for Nigerian airlines.
By Deji Elumoye
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