Federal Government Resolves Two-Decade MM2 Legal Battle and Approves New Aircraft Leasing Firm

The Federal Government resolves the N132bn Bi-Courtney dispute and establishes a new aircraft leasing company to support private Nigerian airlines.

By: AXL Media

Published: May 1, 2026, 11:06 AM EDT

Source: Information for this report was sourced from The Nation Newspaper

Resolution of the Long-Standing Aviation Stalemate

The Federal Government has achieved a significant breakthrough in the Nigerian aviation sector by resolving the 20-year legal conflict surrounding the Murtala Muhammed Airport Terminal Two (MM2) in Lagos. Following the fifth Federal Executive Council (FEC) meeting of 2026, Aviation and Aerospace Development Minister Festus Keyamo confirmed that the government reached a definitive "give and take" settlement with Bi-Courtney Aviation Services Limited. This resolution ends a series of disagreements that have spanned multiple administrations and stalled major infrastructure developments in the Lagos aerotropolis.

Major Financial and Operational Concessions

Under the terms of the new agreement, Bi-Courtney chairman Wale Babalakin has agreed to write off a N132 billion damages claim previously awarded by the Supreme Court. Additionally, the concessionaire has relinquished all claims to the Murtala Muhammed Airport Terminal One (MM1), ensuring the Federal Airports Authority of Nigeria (FAAN) retains full control over the domestic wing. Crucially, the exclusivity clause that prevented other private airport developments in Lagos has been removed, effectively clearing the legal path for the Lagos State Government to proceed with the Lekki Airport project.

Revitalization of Abandoned Infrastructure

In exchange for these concessions, the Federal Government has restored Bi-Courtney’s rights to the hotel and conference center opposite MM2. The project, which had been abandoned for years following the revocation of rights by a previous administration, must now be completed within 24 months. The five-star facility will operate on a revenue-sharing basis with the government. Minister Keyamo emphasized that this move is designed to complete the airport's ecosystem and ensure the government finally begins to earn direct revenue from MM2 operations.