Federal Government and Bi‑Courtney agreement nullifies N132 billion judgment debt

For almost two decades, a parcel of land inside the busy Murtala Muhammed Airport has symbolised ambitions stalled by dispute. Unfinished concrete structures have remained frozen in time, cranes sit idle, and a once‑promising airport hotel and conference complex has become a lasting emblem of Nigeria’s prolonged infrastructure conflicts, OLASUNKANMI AKINLOTAN reports

After a protracted legal battle, the Federal Government and Bi‑Courtney Aviation Services Limited have reached a comprehensive truce that eliminates a N132 bn judgment debt and reopens the possibility of reviving a long‑abandoned project that many had written off.

The core of the settlement is a reciprocal concession: Bi‑Courtney will surrender its N132 bn Supreme Court judgment debt against the government and will give up certain concession rights linked to the airport’s Terminal 2 operations.

The Punch learned that one of the major concessions will allow the Lagos State Government to proceed with its planned airport in the Lekki area of the state.

Previously, Bi‑Courtney had agreed not to develop any other airport in Lagos until the MM2 lease expired.

In return, the government will restore the company’s entitlement to complete and operate its hotel and conference centre projects within the airport precinct.

Announcing the breakthrough, Aviation and Aerospace Development Minister Festus Keyamo described the agreement as more than a settlement, calling it a fresh start for Nigeria’s aviation sector.

“This resolution reflects our commitment to fostering a conducive environment for investment, efficiency, and growth in the aviation industry,” Keyamo said.

The dispute originated in 2005 when Bi‑Courtney began developing an airport hotel and conference centre on land allocated by the Federal Airports Authority of Nigeria. The development was intended to complement the privately operated Terminal 2, known as MM2, a landmark of Nigeria’s early airport‑concession experiment.

In 2013, FAAN terminated the leases granted to Bi‑Courtney, citing alleged breaches of contractual obligations and failure to complete the project within the agreed timelines. The termination sparked a legal battle that extended for years, involving courts, regulators, and investors.

Bi‑Courtney responded by obtaining a court order that restrained FAAN from repossessing the site, arguing that the delays were not its responsibility.

“We are ready to finish the two projects, but we are completely scared of FAAN because of its antecedents,” the firm said at the time, highlighting the depth of mistrust.

“For example, we spent $2 m to buy tiles and another $1.2 m to airlift them for the projects, only for FAAN to frustrate us,” the company added.

The fallout extended beyond halted construction. According to the company, international partners withdrew, deterred by what they perceived as an unpredictable business environment.

“What is more painful is that an international company that we signed agreements with on the two projects pulled out of Nigeria because of the harsh business environment,” Bi‑Courtney lamented.

For years, the conflict cast a shadow over both the abandoned site and Nigeria’s broader effort to attract private investment in infrastructure.

When the case reached the final stages in the courts, the financial stakes had escalated. A Supreme Court judgment awarded Bi‑Courtney N132 bn, creating a substantial liability for the Federal Government.

Nevertheless, despite the judgment in the company’s favour, the project remained stalled. This paradox underscores the significance of the latest agreement.

In a recent statement, Keyamo said, “What we have achieved is a win‑win outcome for all parties. Bi‑Courtney has agreed to write off the N132 bn Supreme Court judgment debt and relinquish certain concession rights, while the Federal Government, in turn, has restored their rights to complete and operate the hotel project on a mutually beneficial revenue‑sharing basis.”

For a company to walk away from a claim, the decision naturally raises questions. Insiders suggest the long‑term view is that reviving a commercially viable asset could be more rewarding than pursuing a prolonged legal victory.

Beyond the monetary figures, the agreement carries symbolic importance.

For years, the derelict structures near MM2 have served as a constant reminder to travellers of unrealised potential. Officials now say the project may finally move from aspiration to actual delivery.

Keyamo believes the ripple effects will extend far beyond a single development, stating, “This agreement unlocks the full commercial potential of MM2 and removes encumbrances that have hindered broader projects, including the proposed Lekki International Airport.”

In an industry where infrastructure gaps often translate into higher costs and inefficiencies, the potential revival of the hotel and conference centre is being viewed as a step toward a more integrated aviation ecosystem.

The development could also signal a shift in how government and private investors resolve disputes—through negotiation rather than prolonged litigation.

The Minister promptly acknowledged Bi‑Courtney’s leadership, especially its chairman Wale Babalakin, for their role in securing the agreement. He described the breakthrough as “the power of dialogue, professionalism, and collaboration in resolving even the most complex disputes.”

If successful, the real victory will be not only the settlement of a N132 bn debt but also the restoration of confidence among potential investors in the aviation sector.

Industry expert Samuel Caulcrick called the resolution a positive step, noting that while both the public and investors await full details of the agreement, early indications suggest it could boost investor confidence.

He added that the development appears encouraging and may herald new opportunities, even as stakeholders remain cautiously expectant.

“The resolution is a welcome development; the public is still awaiting the details. As for investors, they are as anxious as the public for the details; to me, it looks promising to would‑be investors,” he said.