Federal Government Settles Long-Standing Dispute with Buy Courtney Aviation Services
The Federal Government has finalized a settlement with Buy Courtney Aviation Services Limited, bringing an end to a protracted dispute concerning Murtala Muhammed Airport Terminal 2 (MMA2) in Lagos. This resolution marks a significant development in one of the aviation sector’s most enduring legal conflicts.
Festus Keyamo, Minister of Aviation and Aerospace Development, announced the agreement on Thursday following a meeting of the Federal Executive Council (FEC) in Abuja. He emphasized that the settlement represents a conclusive step towards resolving the issues that have plagued the aviation industry for nearly two decades.
“I am pleased to confirm that this government has definitively resolved the matter,” said Keyamo, adding that the council approved the terms of the settlement with Buy Courtney. The legal disputes stem from a concession granted in 2003, when the federal government allowed Wale Babalakin’s Buy Courtney to construct and operate the private terminal after the previous one was damaged by fire.
MMA2 commenced operations in 2007, but disputes quickly arose regarding the terms of the concession. Controversies over additional airport facilities and the transfer of revenue rights led to extensive litigation, including several court rulings that favored Bycourtney, awarding it substantial claims against the government.
Key Outcomes from the Settlement
A notable aspect of the new agreement is Bycourtney’s decision to waive the judgment debt of NOK 132 billion, which included accrued interest. Keyamo remarked, “The Supreme Court said the federal government should pay him N132 billion plus interest…I told him no one would pay that money. He wrote it off.”
Additionally, both parties have consented to eliminate the exclusivity clause from the original concession, which previously restricted the development of other civil airports within a specified proximity to Lagos. This change is expected to facilitate infrastructure growth, including upcoming airport projects in the state.
Government Initiatives to Enhance Airport Operations
In conjunction with the settlement, the federal government has agreed to reinstate a previously scrapped hotel and conference center project near MMA2, along with a revised completion timeline. Furthermore, there will be a shift to relocate more regional flight operations to the terminal to boost traffic and commercial viability.
The new arrangement will also allow the federal government to start receiving revenue from MMA2 operations. Keyamo characterized the outcome as a mutually beneficial deal, stating, “At the end of the day, this was a very good deal for everyone. It’s give and take.”
The MMA2 dispute has been recognized as one of the most intricate conflicts in Nigeria’s aviation history, raising critical questions about contract enforcement and investor security. A formal signing ceremony is slated to occur in Lagos, where additional details of the agreement will be disclosed.
Furthermore, Keyamo announced that the FEC has approved a plan to create a national aircraft leasing framework aimed at enhancing access to aircraft for domestic airlines. This initiative, expected to be fueled by private sector investment, will receive backing from President Bola Tinubu’s administration, which will provide guarantees to fortify the aviation sector.
