MMA2 Deal: Lagos Set For Fresh Investment, Job Creation As 20-Year Dispute Ends

By Sherif Salau

Lagos is poised for fresh investment, infrastructure development and employment opportunities following the resolution of a nearly 20-year dispute over the management and operation of Murtala Muhammed Airport Terminal Two (MMA2).

The breakthrough came on Tuesday when the Federal Government, the Federal Airports Authority of Nigeria (FAAN) and Bi-Courtney Aviation Services Limited signed a comprehensive settlement agreement to end years of legal battles and commercial disagreements surrounding the domestic terminal.

The agreement was signed by the Minister of Aviation and Aerospace Development, Festus Keyamo, on behalf of the Federal Government, while Bi-Courtney Chairman, Dr Wale Babalakin, represented the concessionaire.

The settlement, which had earlier received approval from the Federal Executive Council under President Bola Tinubu, is expected to remove longstanding obstacles to infrastructure expansion, improve the terminal’s commercial operations and create opportunities for businesses within Lagos’ aviation sector.

A major provision of the agreement allows FAAN to begin receiving concession fees from MMA2 after nearly two decades without revenue from the facility. In exchange, the parties have agreed to waive historical claims, while Bi-Courtney has relinquished its claim to a major Supreme Court judgment debt and abandoned exclusivity claims that had hindered further development around the airport.

Keyamo described the agreement as a turning point in the management of the terminal, noting that it would replace years of litigation with a framework that provides financial benefits and clearer operational responsibilities for both parties.

“FAAN has not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from that settlement,” the minister said after the signing.

Beyond resolving the dispute, the agreement is expected to accelerate the development of facilities that could stimulate economic activity and create jobs in Lagos.

Bi-Courtney has been granted the opportunity to expand the terminal’s aircraft apron and introduce regional flight operations within Africa, subject to capacity limitations and the necessary regulatory approvals.

The expansion could support increased aircraft movements and passenger traffic, creating additional business opportunities for airlines, ground-handling companies, retailers and other aviation service providers.

The long-delayed four-star hotel and conference centre opposite MMA2 have also been earmarked for completion under a restored lease arrangement. The project will operate under a revenue-sharing framework, with a defined construction timeline intended to move the development towards completion.

Once construction begins, the projects are expected to generate employment across several sectors, including building and construction, hospitality, transportation, retail and aviation support services. Their eventual completion could also provide sustained employment for hotel workers, conference service providers and other professionals.

The anticipated increase in commercial activities around the terminal is expected to benefit businesses in Ikeja and neighbouring communities, reinforcing the airport corridor’s importance as a centre of economic activity.

The settlement also provides greater clarity over the ownership and management of the General Aviation Terminal, confirming that the facility remains federal property under FAAN’s operation. The clarification is expected to reduce the likelihood of further disagreements over infrastructure and operational responsibilities within the airport complex.

For aviation stakeholders, the agreement represents an opportunity to shift attention from prolonged legal disputes to improving infrastructure, expanding services and strengthening the commercial viability of MMA2.

The resolution could also support Lagos’ ambition to consolidate its position as a major aviation and commercial hub in West Africa, particularly if the planned expansion translates into increased passenger capacity, improved facilities and more regional connections.

Although the financial terms of the settlement have not been fully disclosed, the agreement establishes a new framework for cooperation between the government and the concessionaire.

The immediate challenge will be translating the agreement into tangible development, particularly the expansion of airport infrastructure and completion of the hotel and conference centre.

After nearly two decades of uncertainty, the settlement offers a fresh opportunity to unlock the commercial potential of MMA2, improve revenue generation for FAAN and create new avenues for investment and employment in Lagos.