The Federal Government may finally resolve its 19-year legal dispute with Bi-Courtney Aviation Services Limited (BASL) over the stalled Lagos airport mega projects, as fresh negotiations have commenced to return the multi-billion-naira four-star hotel and International Conference Centre at the Murtala Muhammed Airport to the concessionaire.
The Minister of Aviation and Aerospace Development, Festus Keyamo, held a closed-door meeting last Thursday with top officials of Bi-Courtney and the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, at FAAN headquarters in Lagos.
Sources familiar with the meeting disclosed that the talks centred on resolving the protracted concession dispute, which has kept the hotel and conference centre under lock for nearly two decades. “From what I gathered, the Federal Government may approve the resumption of the project,” one source confirmed.
Attempts to obtain an official comment from the minister and spokespersons of FAAN and Bi-Courtney were unsuccessful as of press time.
The dispute traces back to 2005, when Bi-Courtney commenced the construction of the airport hotel and conference centre on land allocated by FAAN under a concession agreement.
However, in 2013, FAAN announced the termination of the lease agreements, accusing Bi-Courtney of breaching contractual terms and failing to complete the projects within the agreed timeframe.
Bi-Courtney, on its part, obtained a court order restraining FAAN from repossessing the sites, arguing that delays were caused by FAAN’s failure to provide necessary support.
The company further alleged that FAAN’s actions forced an international contractor to pull out of Nigeria. “We are ready to finish the two projects, but we are completely scared of FAAN because of its antecedents. For example, we spent $2m on tiles and another $1.2m to airlift them, only for FAAN to frustrate us,” Bi-Courtney had said in a statement.
Reacting to the renewed talks, aviation expert John Ojukutu welcomed the development, stressing that the government should focus on regulation rather than running aviation businesses.
“Government should have no business in the business of aviation. If they give Bi-Courtney back its property, I will congratulate them. Whenever they release it to him, he should then start counting his 35 years,” Ojukutu said, referring to Bi-Courtney’s Build-Operate-Transfer (BOT) concession, which grants it a 35-year operating period.
Industry analysts also believe that resolving the dispute could boost investor confidence in Nigeria’s aviation sector, particularly at a time when the Federal Government is pushing for public-private partnerships to develop critical airport infrastructure.
The completion of the Lagos airport hotel and conference centre is expected to boost Nigeria’s aviation hospitality services, attract international conferences, and enhance the revenue profile of the Murtala Muhammed Airport.
The project, once completed, is projected to generate hundreds of jobs, stimulate tourism, and position Lagos as a West African aviation hub.
The Federal Government’s move to reconcile with Bi-Courtney is also seen as a test case for Nigeria’s commitment to honouring concession agreements, which has been a major concern for foreign investors.
While no official timeline has been announced, the renewed negotiations signal a potential breakthrough in one of Nigeria’s longest-running aviation disputes. If successful, construction activities could resume before the end of the year, marking a significant step towards modernising Nigeria’s airport infrastructure.