The long-standing dispute between Bi-Courtney Limited and the Federal Government of Nigeria over the concession of the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos continues to raise concerns about contract integrity and investor confidence in the country’s aviation sector.
The concession agreement, signed in 2003, granted Bi-Courtney a 36-year exclusive right to develop and manage the MMA2 terminal for domestic operations. Under the terms, no competing domestic terminal was to be operated within Lagos State throughout the concession period. However, multiple developments in recent years appear to have contradicted those terms.
Despite the exclusivity clause, domestic operations have been permitted at other terminals, including the General Aviation Terminal. Additionally, government support for constructing a new airport facility in Lagos has further deepened the disagreement.
Bi-Courtney, owned by legal luminary Dr. Wale Babalakin (SAN), claims it has suffered losses exceeding ₦100 billion due to the government’s alleged failure to honor the agreement. The company also cites unauthorized use of competing terminals and revenue diversion as ongoing breaches.
In a ruling by the Court of Appeal, the court sided with Bi-Courtney, affirming that the Federal Government had violated the agreement. The judgment directed the government to return all scheduled domestic flights in Lagos to MMA2 and account for revenue collected through operations outside the terminal.
Despite the court’s verdict, enforcement has stalled, and Bi-Courtney officials say the terminal continues to face operational and financial constraints, raising broader concerns about the reliability of public-private partnerships in Nigeria.
Observers and analysts warn that the controversy casts a long shadow over investment conditions in Nigeria’s aviation industry. A recent study in the Journal of African Law described the MMA2 case as a reflection of broader structural issues—ranging from contract enforcement difficulties to political interference and inconsistent regulatory policies.
Dr. Babalakin has publicly condemned what he described as “blatant contract violations,” asserting that such actions discourage private investment and damage the country’s international reputation.
Transparency and accountability advocates say the MMA2 experience should serve as a catalyst for systemic reform. Nigeria’s ranking in global corruption indices—154th out of 180 countries, according to Transparency International—underscores the urgent need for credible governance frameworks in infrastructure agreements.
The World Bank has also weighed in, noting that Nigeria’s aviation sector could become a driver of economic growth if the country ensures regulatory stability and builds investor trust. Failure to do so, the report says, risks undermining both local and foreign confidence in public-private partnerships.
As the Federal Government works to boost infrastructure investment, particularly in air travel, industry experts urge a reconsideration of how concession agreements are managed—and, more importantly, honored. They argue that sustainable development requires not only capital and expertise but also trust in the rule of law.
The unresolved issues surrounding MMA2 offer a cautionary tale. Without transparent policies and strict adherence to legal commitments, stakeholders say, efforts to transform Nigeria’s aviation sector may struggle to take off.
