FEC resolves MM2 dispute, approves aircraft leasing company

The Federal Executive Council (FEC) has approved the resolution of the long-standing concession dispute over the Murtala Muhammed Airport Terminal Two (MM2) in Lagos, alongside plans to establish a Nigerian aircraft leasing company to support domestic airlines.

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the decisions on Thursday while briefing State House correspondents after the FEC meeting chaired by President Bola Tinubu at the Presidential Villa, Abuja.

Keyamo described both approvals as critical developments for the aviation sector, particularly the resolution of a dispute that had lasted over 20 years between the Federal Government and Bi-Courtney Aviation Services Limited, owned by Wale Babalakin.

“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,” Keyamo said.

The minister explained that the settlement addressed several contentious issues, including financial claims, control of airport terminals, and exclusivity rights. A major breakthrough, he noted, was the concessionaire’s agreement to forgo a Supreme Court-awarded compensation of N132 billion, with interest accruing since 2009.

“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,” he said.

Keyamo added that Bi-Courtney also relinquished its claim to the Murtala Muhammed Airport Terminal One (MM1), which it had previously argued was part of the original concession.

“We told him to hand back the local airport (MM1) to the federal government. We cannot leave the entire domestic aviation operations in Lagos in private hands. He agreed,” the minister stated.