FAAN begins revenue collection

FAAN has begun earning revenue from the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos after a 20-year dispute with Bi-Courtney Aviation Services Limited ended.

Settlement formalised

The Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the revenue start during formalisation of the settlement involving the Federal Government, FAAN, Bi-Courtney and Stabilini Visinoni Limited.

Keyamo's statement

Keyamo said, 'FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from MMA2.'

“FAAN had not earned a kobo from MMA2 for the last 20 years because of disputes. Today, FAAN begins to earn its money from MMA2”

Settlement terms

The agreement provides for resumption of concession fee payments to FAAN and reciprocal waiver of historical financial claims by both parties.

FEC approval

The Federal Executive Council (FEC) approved the framework for the settlement on 30 April 2026 following negotiations.

Terminal ownership

The revised agreement recognises the General Aviation Terminal (GAT) as government property to be operated by FAAN.

Bi-Courtney expansion

Bi-Courtney will expand its apron at MMA2 to accommodate regional flights within Africa, subject to terminal capacity.

Hotel and conference centre

The agreement restores rights and provides for separate lease arrangements for a four-star hotel and conference centre near the airport.

Regulatory oversight

The government retains regulatory oversight over security, access, emergencies and maintenance standards.

Background dispute

The dispute originated from a 2003 concession agreement between the Federal Government, Bi-Courtney and Stabilini Visinoni Limited for the domestic terminal.

Concession duration

The initial 12-year term was extended to 36 years, but disagreements led to multiple court cases across administrations.

Bi-Courtney's position

Bi-Courtney maintained it had been denied benefits under the concession agreement while FAAN asserted its financial entitlements.

Settlement benefits

The agreement gives Bi-Courtney greater investment certainty while allowing the government to resume revenue collection and plan airport development.

Keyamo's call to action

Keyamo urged FAAN and Bi-Courtney to ensure completed facilities, reliable services and improved airport operations for the public.