The Federal Executive Council (FEC) has given its approval for the resolution of the protracted concession disagreement concerning the Murtala Muhammed Airport Terminal Two (MM2) located in Lagos. In addition, the council has sanctioned the creation of a Nigerian aircraft leasing company, a move intended to provide crucial support to domestic airlines.
Festus Keyamo, the Minister of Aviation and Aerospace Development, informed journalists that the FEC endorsed two pivotal memos submitted by the aviation ministry, characterising both decisions as "significant milestones" for the industry.
He detailed that the federal government has finally brought to a close the dispute spanning over two decades with Bi-Courtney Aviation Services Limited, a firm owned by businessman Wale Babalakin, regarding the MM2 concession.
According to the minister, the disagreement encompassed multiple contentious points, including issues related to the control of the domestic terminal (MM1), financial claims against the government, and the matter of exclusive operational rights.
"As you are all aware, there has been a prolonged dispute between the concessionaire and the federal government over MM2. Today, I am pleased to announce that this administration has settled that issue permanently," he declared.
Keyamo further disclosed that Bi-Courtney has consented to waive a judgment debt amounting to N132 billion, as awarded by the Supreme Court, along with any accumulated interest.
"The first instruction we gave was for him to write off the N132 billion plus interest. No one will be paying that, and he agreed and wrote it off," the minister stated.
He elaborated that the concessionaire has also surrendered its claim to MM1 and has agreed to relinquish its exclusive rights.
In return, the federal government has reinstated Bi-Courtney's ownership of the disused Hotel and Conference Centre situated opposite MM2, with a stipulation that it must be completed within a 24-month timeframe.
Keyamo also announced the approval of a Nigerian aircraft leasing company, to be structured as a Special Purpose Vehicle (SPV) and primarily funded by private sector investment.
"The primary challenge faced by private operators in Nigeria has been obtaining access to aircraft and necessary equipment," he remarked.
He explained that this new initiative is expected to reduce the reliance on foreign leasing companies and enhance the operational stability for Nigerian airlines.
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