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🇳🇬 Nigeria /Economy & Trade

FG, Bi-Courtney end N132bn aviation dispute settlement

From The Punch · (6m ago) English Positive tone

Summarized and contextualized by DistantNews.

TLDR

  • The Federal Government and Bi-Courtney Aviation Services Limited have reached a settlement agreement ending a two-decade dispute over the Murtala Muhammed Airport Terminal Two (MMA2).
  • The agreement includes Bi-Courtney writing off a N132 billion judgment debt owed by the government, resolving key contentions including the concession's scope and exclusivity.
  • This settlement is expected to unlock the full commercial potential of the MMA2 terminal, which has operated under legal uncertainty since its inception.

The Federal Executive Council's approval of the settlement between the Federal Government and Bi-Courtney Aviation Services Limited marks a significant resolution to a protracted dispute that has overshadowed the operations of the Murtala Muhammed Airport Terminal Two (MMA2) for two decades. As reported by The Punch, this agreement, spearheaded by the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, signifies a triumph for pragmatic governance and dispute resolution.

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.

— Festus Keyamo, SANMinister of Aviation and Aerospace Development announcing the FEC's approval of the settlement.

The core of the settlement involves Bi-Courtney, led by Dr. Wale Babalakin, SAN, agreeing to waive a substantial N132 billion judgment debt, including accrued interest. This concession, alongside the resolution of disputes concerning the concession's scope and exclusivity, paves the way for a new era of operational clarity and commercial viability for MMA2. The terminal, a pioneering example of private sector investment in Nigeria's aviation infrastructure, has long been hampered by legal battles, preventing it from reaching its full potential.

For the purpose of transparency, may I just mention a couple of the things we agreed upon, because this is going to be public knowledge, and we intend to be very transparent about this.

— Festus Keyamo, SANMinister of Aviation and Aerospace Development emphasizing transparency regarding the settlement terms.

This resolution is particularly noteworthy as it brings closure to one of the most consequential legal and commercial standoffs in Nigeria's aviation history. The government's proactive approach in resolving this issue demonstrates a commitment to fostering a more stable and attractive investment climate. The upcoming formal signing ceremony in Lagos will provide further transparency, allowing all stakeholders to understand the finalized terms and embrace the future of MMA2 as a fully functional and commercially optimized asset.

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.

— Festus Keyamo, SANMinister of Aviation and Aerospace Development referencing the Supreme Court's previous ruling.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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