20 years after, Lagos airport resolves concession row

The Managing Director and Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has said the resolution of the long-running concession dispute on the Murtala Muhammed Airport Terminal Two (MMA2) represents a major boost for investor confidence and could reshape the future of public-private partnerships (PPPs) in Nigeria’s aviation sector. Speaking […]

The Managing Director and Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has said the resolution of the long-running concession dispute on the Murtala Muhammed Airport Terminal Two (MMA2) represents a major boost for investor confidence and could reshape the future of public-private partnerships (PPPs) in Nigeria’s aviation sector.

Speaking at the African Air Transport Convention & Expo 2026 in Lomé, Togo, Kuku said successful aviation PPPs are built not only on the availability of capital but also on strong institutions, regulatory certainty and disciplined project execution.

Daily Trust reports that 20 years later the federal government has succeeded in resolving the concession row with the Bi-Courtney Aviation Services Limited (BASL), operator of the MMA2.

The resolution of the row saw the MMA2 management forfeiting the N130bn judgement debt while the company would continue the development of the conference centre opposite the MMA2.

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Speaking at the forum, the FAAN MD noted that many infrastructure projects across Africa have faced challenges because of policy inconsistencies, project continuity concerns and market risks that often discourage investors.

Using the MMA2 concession as an example, Kuku noted that the project had become one of the most prominent and controversial airport concession arrangements in Nigeria, generating years of disputes and uncertainty.

“I believe that one of the most announced concession projects has been the Bi-Courtney project with the MMA2, and it has created a lot of noise and conflict. I’m happy to say that within this administration, we’ve done quite a bit of work in renegotiating the contract for the concession,” she said.

The FAAN chief disclosed that the matter has now been resolved at the Federal Executive Council level, describing the development as an important signal to both local and international investors.

“It’s now been resolved. What that means is that it provides better investor confidence for those that are looking to drive PPP projects,” she said.

According to Kuku, the outcome also provides lessons for future concession agreements by ensuring that contracts are structured in a way that protects both government and private sector interests.

“But more importantly, it makes sure that as we start to negotiate these contracts in the future or concession contracts in the future, they’re fair to both the government and the private sector,” she added.

Speaking further, Kuku called for a more strategic approach to aviation financing across Africa, urging development finance institutions (DFIs), multilateral lenders and private investors to prioritise projects that improve regional connectivity.

She argued that Africa’s aviation infrastructure gap cannot be addressed solely through government funding and requires coordinated investment focused on projects that strengthen economic integration and movement across the continent.

According to her, financing institutions should align their funding decisions with regional aviation priorities, particularly projects that can improve connectivity between African countries and unlock trade opportunities.

Kuku also stressed the need for early engagement between project developers and financiers to ensure projects are structured in ways that make them attractive to investors.

She cited an ongoing rail extension project linking Lagos to airport terminals as an example of infrastructure that could benefit from co-financing arrangements due to its potential revenue streams and economic impact.

While acknowledging calls for the establishment of dedicated aviation financing institutions, Kuku argued that creating new institutions may not be necessary.

Instead, she advocated for existing financial institutions to establish specialised aviation desks with the technical expertise needed to understand the sector’s unique requirements.

Kuku said FAAN has developed a roadmap covering short-, medium- and long-term infrastructure requirements across the country’s airport network.

In the short term, the focus is on stabilising airport operations and improving passenger convenience rather than embarking on large-scale infrastructure expansion.

 

The medium- and long-term strategy includes upgrades to terminals, airside facilities, cargo infrastructure and safety-critical systems.

 

She explained that FAAN is also evaluating the specific infrastructure needs of secondary airports while exploring mechanisms that can support route development and attract airline operations.

 

One option under consideration, she said, is the introduction of guarantee schemes that could encourage airlines to operate routes to smaller airports.

 

Kuku noted that while some airport projects can attract private investment because they generate revenue, others require direct government support because they are essential to safety and security.