FG, BASL End 18-Year Dispute, Clear Path For Regional Flights At MMA2
The Federal Government and Bi-Courtney Aviation Services Limited (BASL) have reached an amicable settlement to resolve more than 18 years of disputes over the concession agreement for the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos, paving the way for the commencement of regional flight operations from the facility.
The Minister of Aviation and Aerospace Development, Festus Keyamo, announced the resolution in Abuja on Tuesday, describing the agreement as a significant milestone in the relationship between the government and the private terminal operator.
The settlement is expected to strengthen the public-private partnership arrangement at MMA2, improve airport infrastructure, create employment opportunities and restore investor confidence in Nigeria’s aviation industry.
Under the terms of the agreement, both parties have agreed to waive historical claims against each other and establish a clearer framework for fulfilling their respective obligations going forward.
A major provision of the settlement is the commencement of concession fee payments by BASL to the Federal Airports Authority of Nigeria (FAAN) under the original concession agreement. The development is expected to enable FAAN to begin receiving revenue from the terminal after nearly two decades of disputes.
Keyamo explained that the agreement also removes BASL’s exclusive rights under Article 2 of the original concession agreement, allowing the Federal Government greater flexibility in planning future developments within the airport complex.
He further clarified that the General Aviation Terminal (GAT) has been formally recognised as the property of the Federal Government and placed under the operational control of FAAN.
According to the minister, the clarification resolves one of the major points of contention between the government and the concessionaire while providing greater certainty over the ownership and management of aviation facilities at the airport.
In return, the Federal Government has agreed to allow BASL to expand its apron facilities and accommodate regional flights across Africa, subject to the terminal’s full operational capacity and applicable regulatory requirements.
The planned expansion is expected to enhance MMA2’s capacity, create additional opportunities for airlines and passengers, and improve connectivity between Lagos and other African destinations.
Keyamo said the government had also agreed to release historical claims against BASL, including accumulated concession fees and specified ancillary payments arising before the execution of the settlement.
He described the agreement as a reciprocal arrangement in which both parties had made concessions to resolve longstanding disagreements and establish a more sustainable working relationship.
“However, settling past claims comes with clear obligations for the future. Upon execution of the agreement, the concessionaire is to commence payment of the concession fees due under the original agreements,” the minister said.
He added that FAAN had not received revenue from MMA2 for approximately 20 years because of the disputes, expressing optimism that the settlement would enable the agency to begin earning concession fees.
In his response, BASL Chairman, Dr Wale Babalakin, SAN, thanked President Bola Ahmed Tinubu for his intervention in resolving the disagreement through the Ministry of Aviation and Aerospace Development.
Babalakin said the dispute had persisted for more than 18 years despite the fundamental issues remaining substantially unchanged, adding that the president’s intervention had helped both parties reach a compromise.
“We have found a solution to this issue,” he said, expressing appreciation to the president and Nigerians for their support.
The BASL chairman said the agreement would unlock employment opportunities, particularly well-remunerated jobs, while encouraging improvements to the airport’s appearance and renewed progress on previously abandoned projects.
He also expressed hope that the resolution would reassure investors and businesses that disputes with government could be settled through dialogue and mutually acceptable agreements.
The settlement marks a new phase in the management and development of MMA2, with its long-term impact expected to depend on the implementation of the revised contractual terms, the planned apron expansion and the commencement of regional flight operations.
