Fed Govt resolves 20-year MM2 dispute with Bi-Courtney, approves aircraft leasing firm

However, under the new deal approved by the FEC, Bi-Courtney, owned by aviation investor Wale Babalakin, agreed to forfeit the entire N132 billion claim.

Keyamo said: “First thing, I told him, write off the N132 billion plus interest; nobody is going to pay you that. He wrote it off.”

He added that Bi-Courtney also relinquished its claim to MM1, allowing the Federal Government to retain control of the domestic terminal, which he described as critical to national aviation operations.

The minister further said that the contentious exclusivity clause in the original concession agreement, which barred the development of another private airport within a defined radius in Lagos, had been removed.

The clause had previously stalled plans for the proposed Lekki Airport project by the Lagos State Government.

In return, the Federal Government restored Bi-Courtney’s rights over the long-abandoned hotel and conference centre opposite MM2, which had been revoked by a previous administration.

Under the new terms, the concessionaire is to complete the five-star facility within 24 months and operate it on a revenue-sharing basis with the government.

“We will not tolerate any delay again. That uncompleted building will be gone, and we will have a proper hotel to benefit the entire aerotropolis,” Keyamo said.

The agreement also provides for the relocation of regional flight operations to MM2, alongside plans to expand the terminal’s apron capacity to accommodate more aircraft.

Keyamo noted that the Federal Government would now begin to earn revenue from MM2 operations under the revised arrangement, correcting a long-standing imbalance in the concession structure.

“At the end of the day, it was a very good deal for everybody. It was give and take. He profited and we profited,” he said.

The minister commended Babalakin for what he described as patriotism in agreeing to the concessions, adding that the full details of the agreement would be unveiled at a formal signing ceremony in Lagos.

The FEC also approved the establishment of a Nigeria Aircraft Leasing Company, a special purpose vehicle (SPV) designed to address the chronic challenge of aircraft access for domestic airlines.

Keyamo described the initiative as a “game changer” for the aviation industry, noting that Nigeria’s airline sector is uniquely driven almost entirely by private operators without a national carrier.

He explained that the new leasing company would be privately funded but backed by government guarantees to facilitate aircraft acquisition and leasing to local airlines on both short- and long-term bases.

“The major problem of private operators in Nigeria has been access to aircraft and equipment. This SPV will solve that problem,” he said.

The minister added that major financial institutions within and outside Africa had already indicated interest in investing in the venture, citing Nigeria’s large market, population, and aviation traffic as key attractions.

He added that the government would not commit direct funding to the company but would provide guarantees for leases and repossession frameworks, while also holding equity through its investment arm.

According to Keyamo, President Tinubu had directed him to work with the Ministers of Finance, Justice, and Trade and Investment to finalise the structure and operational framework of the SPV.

He expressed optimism that the initiative would significantly reduce flight delays and cancellations, often caused by the inability of local airlines to sustain aircraft leasing arrangements.

“This is a game changer that you will see in the next few months. Congratulations to the Nigerian aviation industry,” the minister said.