The Federal Executive Council on Thursday approved a settlement framework between the Federal Government and Bi-Courtney Aviation Services Limited, ending a long-running dispute over airport operations in Lagos.
A key part of the deal is Bi-Courtney’s decision to forgo a N132bn judgment debt, including interest accrued since 2009, alongside other mutual concessions.
Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, announced the decision after the FEC meeting in Abuja. He described the agreement as a balanced compromise that resolves nearly two decades of legal uncertainty surrounding the Murtala Muhammed Airport Terminal Two.
“I can happily tell you that this government has resolved that issue once and for all. Council today approved the terms of the agreement we reached with Babalakin to settle all the vexed issues surrounding that airport,” Keyamo told State House correspondents.
The dispute dates back to 2003, when Bi-Courtney, owned by Dr Wale Babalakin, SAN, secured a concession to build and operate MMA2 after a fire destroyed the old terminal. The facility opened in 2007.
However, disagreements over concession terms led to litigation, with Bi-Courtney later awarded N132bn after claiming a breach by the Federal Government.
The Supreme Court ruled in its favour, ordering payment and transfer of the General Aviation Terminal.
Keyamo said the new agreement resolves all issues.
“The Supreme Court said the Federal Government should hand over the local airport to him, and that the Federal Government should pay him N132bn plus interest from 2009.
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“I told him: nobody is going to pay you that. He wrote it off. Babalakin wrote off the N132bn outright,” he said.
He added that the exclusivity clause restricting other private airports in Lagos, which had stalled the Lekki Airport project, has been removed.
Additionally, Bi-Courtney agreed to return control of Murtala Muhammed Airport Terminal One to the government.
In return, the government reinstated Bi-Courtney’s rights to complete a five-star hotel and conference centre opposite MMA2 within 24 months under a shared ownership model.
“We gave it back to him to complete and run on a shared basis with the Federal Government,” Keyamo said.
The agreement also allows relocation of regional flights to MMA2 and expansion of its apron if required.
“With this agreement, immediately after today, the federal government will now begin to earn its own share from the operations of MM2,” he added.
Keyamo said a formal signing ceremony with stakeholders would soon take place in Lagos.