Babalakin’s MMA2 Breakthrough: The End of a 20-year Aviation War and the Road Ahead

On October 20, 2026, a landmark agreement was reached between Aviation Minister Festus Keyamo and entrepreneur Wale Babalakin to end a protracted legal battle over Lagos' Murtala Muhammed Airport Terminal Two (MMA2). This resolution, approved by the Federal Executive Council, brings to a close a dispute that had dragged on for nearly two decades.

MMA2 stands as the first and sole major Nigerian airport terminal constructed entirely through private investment. Following the devastating fire that destroyed the outdated domestic terminal in 2000, Babalakin's Bi-Courtney Aviation Services assumed control of the project after the initial contractor defaulted, with the terminal inaugurating its doors in May 2007.

Today, MMA2 accounts for approximately 75% of Lagos' domestic flights and possesses the capacity to accommodate up to four million passengers annually. It was also the trailblazer in West Africa to implement common-use check-in systems, self-service kiosks, and advanced baggage reconciliation technology.

Initially, the Federal Airports Authority of Nigeria (FAAN) stipulated a 12-year concession period, whereas Bi-Courtney claimed the Yar’Adua government had sanctioned a more extended 36-year term. Bi-Courtney further alleged that the government breached an exclusivity clause by maintaining the older General Aviation Terminal open and rerouting flights, resulting in a N132 billion judgment for lost revenue, which was subsequently upheld by the Supreme Court.

Despite this victory, the government failed to pay the stipulated compensation, causing Bi-Courtney to withhold its concession fees and consequently impede the progress of a planned hotel and conference center.

The recently concluded settlement aims to resolve these outstanding issues. Under the terms of the agreement, Bi-Courtney will write off the N132 billion in unpaid compensation, relinquish its claims to the historical terminal, abandon its stance on the exclusivity clause pertaining to other future developments at Lagos' domestic airports, and recommence paying the concession fees promptly.

Conversely, the government will absolve itself of the two decades of overdue concession fees, grant Bi-Courtney a 24-month window to finalize the hotel and conference center projects, approve the relocation of regional flights to MMA2, and allocate additional land to expand the aircraft apron.

Two crucial elements of the dispute, however, remain largely unaddressed in most reports. These are the precise amount of concession fees that have been forgiven, and whether the settlement definitively fixes the concession period at 12 or 36 years, a contentious point that sparked the lengthy legal conflict. The imminent 24-month deadline serves as the first critical milestone to monitor; any failure to adhere to this timeline will not incur penalties as of now.