Following the historic settlement of the protracted conflict between the Federal Government and Bi-Courtney Aviation Services Limited (BASL), the operators of the Murtala Muhammed Airport Terminal 2 (MMA2), Nigeria’s aviation industry entered a new phase.
Through talks headed by Mr. Festus Keyamo, SAN, Minister of Aviation and Aerospace Development, and supported by the Federal Executive Council, the long-running conflict—which turned into one of the most contentious public-private partnership conflicts in Nigeria’s aviation sector—was ultimately settled.
Bi-Courtney gave up its exclusivity rights over domestic terminal operations in Lagos and consented to forfeit a reported N132 billion Supreme Court judgment debt as part of the deal.
In exchange, under a revenue-sharing arrangement, the Federal Government reinstated the company’s rights to finish and run its shelved hotel and conference center project across from MMA2.
According to Daily Trust, a significant victim of the never-ending conflict between the Federal Airports Authority of Nigeria (FAAN) and the BASL was the hotel and conference center project.
But according to the new deal, the BASL would run the project for 40 years after it was finished before turning it over to the federal government.
Speaking on the deal, Keyamo clarified that the government could not permit private companies to maintain total control over domestic aviation operations in Lagos, particularly considering the airport’s strategic and security significance.
He said that Bi-Courtney dropped the exclusive agreement and agreed to return domestic airport operations in accordance with the government’s stance.
For its part, the Federal Government gave the firm 24 months to finish the hotel and conference center project and allowed its continuance. The agreement calls for both parties to split the project’s and MMA2’s earnings
Keyamo stated, “So Babalaki wrote off the N132 billion outright,” in reference to the deal. I instructed him to “hand it back to the federal government” regarding the local airports, or MM1. We cannot entrust the local aviation operations in Lagos, which are our lifeblood, to a private individual.
“Control must be exercised by the government. He gave the municipal airport back to the federal authorities after agreeing with us. Regarding exclusivity, we also informed him that it is not appropriate for him to have total control over the Lagos home market, especially for security concerns.
He concurred. We eliminated that exclusivity clause. However, what did we provide him? We returned the hotel and conference center to him. It’s alright. Finish it and manage it jointly with the federal government. Thus, it’s not even exclusive.
“That will continue to help us with the federal government. According to the new agreement, he has 24 months to finish and operate the hotel and conference center across from the MM2. We informed him that we would not put up with another delay. Let’s build a decent hotel that will help the surrounding aerotropolis as a whole.
Courtney made these compromises. With this agreement, the federal government will start earning its own portion from MM2’s operations as soon as today. In the end, everyone benefited greatly from the arrangement. You know, it was a back-and-forth exchange of give and take.
However, notwithstanding Bi-Courtney’s silence, which is at the heart of the concession dispute, conflicting responses have continued to follow the Minister’s public statement.
Group Capt. John Ojikutu, rtd, an aviation analyst and former general secretary of the Aviation Roundtable, stated, “I am very concerned, and so should stakeholders be on this matter that had dragged on for almost two decades.”
However, two weeks have passed since the Minister’s gospel talk, and neither Babalakin nor his business, Bi-Courtney, have responded to us regarding a matter that, in my opinion, requires the Supreme Court’s approval of any agreements between the two parties against its ruling, particularly given that both Keyamo and Babalakin are SANs.
“What the succeeding administrations have done to Bi-Courtney is identical to what they have done to Dangote since the departure of the Obasanjo administration. It should be noted that Sirika, the immediate former Minister Hadi Sirika, did not work and followed the same route.
This administration did not create the designation of the terminal for WA Regional Passengers; rather, it was a feature of the terminal from the beginning to the end.
Olayinka Abioye, the immediate past general secretary of the National Association of Aircraft Pilots and Engineers, praised the Ministry of Aviation, FAAN, and Bi-Courtney for reaching a consensus following years of animosity.
The next problem, he says, is making sure MMA2 is appropriately reorganized to manage regional operations with ease.
He pointed out that the terminal will need better passenger facilitation systems, operational improvements, and increased cooperation between the Nigerian Civil Aviation Authority, airlines, and the terminal operator.
Additionally, Abioye cautioned against charging customers and airlines excessive fees, emphasizing that long-term planning and patience are more important for aviation projects than aggressive profiteering. He praised the government’s continued initiatives to examine aviation taxes and levies, claiming that such changes could lessen the strain on airlines’ operations.
Traffic congestion around MMA2, especially in the morning, was another issue brought up. Abioye noted that unless BASL and the Federal Airports Authority of Nigeria implement immediate traffic management measures, the current congestion surrounding the terminal could get worse once regional and domestic aircraft start flying concurrently.
Noting that managing regional operations necessitates greater standards of passenger handling, security coordination, and operational efficiency, he underlined the necessity of personnel retraining.
“To the glory of God, we are alive to see the Bola Ahmed Tinubu administration resolve the entire controversy,” he stated. “Some of us suffered because of these matters.”
First and foremost, the Nigeria Civil Aviation Authority must reexamine the entire terminal and design it such that regional travelers may easily navigate it. I am confident that Bi-Courtney is capable of doing this.
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