Federal Govt, Bi-Courtney Settle MM2 Row After 20 Years

The federal government has resolved its long-standing dispute with Bi-Courtney Aviation Services Limited over the Murtala Mohammed Airport Terminal Two (MM2), bringing to an end a crisis that has lasted for about 20 years.

The resolution was approved by the Federal Executive Council (FEC) at its meeting presided over by President Bola Ahmed Tinubu at the Presidential Villa, Abuja.

Briefing State House Correspondents after the meeting, the minister of Aviation and Aerospace Development, Festus Keyamo, said the council approved the terms of an agreement reached with Bi-Courtney to settle all issues surrounding the airport.

“We in Aviation brought two very important memos to the council, which were graciously approved,” Keyamo said.

He noted that the dispute, which spanned multiple administrations, involved disagreements over the concession agreement, including Bi-Courtney’s claim that the Murtala Muhammed Airport Terminal One (MM1) formed part of its concession.

Keyamo said the Supreme Court had ruled in favour of Bi-Courtney, ordering the Federal Government to pay about N132 billion, plus interest from 2009.

“Now I can happily tell you that this government has resolved that issue, a 20-year-old dispute, once and for all,” he added.

According to him, as part of the agreement, Bi-Courtney agreed to write off the N132 billion judgment sum.

“So Babalakin wrote off the N132 billion outright,” he said.

He added that the company also relinquished its claim to MM1 and accepted the removal of the exclusivity clause in the concession agreement.

“We also told him that, look, it is not right… for you to have complete control over the domestic market in Lagos. He agreed. So that exclusivity clause, we removed it,” Keyamo stated.

On its part, the Federal Government agreed to return the uncompleted hotel and conference centre opposite MM2 to Bi-Courtney for completion and operation on a shared basis.

“So he has 24 months under the new agreement to complete that Conference Centre and Hotel… and we told him we will not tolerate any delay again,” he said.

The minister further disclosed that the Federal Government would move regional flight operations to MM2, subject to its capacity, and expand its apron to accommodate more aircraft.

He added that under the new arrangement, the Federal Government would begin earning revenue from MM2’s operations.

“At the end of the day, it was a very good deal for everybody. It was back and forth, give and take,” Keyamo said.

He also disclosed that a formal signing ceremony involving relevant stakeholders would be held in Lagos, where further details of the agreement would be made public.