FG, Bi-Courtney Settle 20-Year Dispute After N132bn Debt Write-off

By Adedapo Adesanya

The federal government and Bi-Courtney Aviation Services Limited have resolved a two-decade legal and financial dispute after the company agreed to waive a N132 billion judgment debt and interest claim against the government.

The settlement, approved by the Federal Executive Council (FEC), is expected to enable the government to generate revenue from operations of Murtala Muhammed Airport Terminal Two (MM2) in Lagos following changes to the existing concession arrangements.

Mr Festus Keyamo, Minister of Aviation and Aerospace Development, announced the development, describing it as a breakthrough in resolving the longstanding dispute between both parties.

Under the agreement, Bi-Courtney will write off the N132 billion judgment debt and associated interest claims, while the government will remove exclusive clauses and restore specific concessions relating to the airport terminal’s operations.

The resolution marks a significant development in the government’s efforts to address longstanding contractual and financial disagreements surrounding airport infrastructure and concession agreements.

The dispute had persisted for about 20 years, complicating the relationship between the government and the company over the operation of MM2, which was developed and is operated by Bi-Courtney under a concession arrangement.

With the settlement, the government expects to begin earning revenue from the terminal’s operations, although details of the revised revenue-sharing arrangements were not provided in the announcement.

Mr Keyamo also highlighted plans to establish an aircraft leasing company backed by international investors to address constraints affecting Nigeria’s domestic aviation industry.

The proposed initiative is intended to improve local airlines’ access to aircraft amid challenges that have limited fleet expansion and increased their reliance on foreign operators and leasing arrangements.

The minister said the broader measures were designed to support investment, modernise aviation infrastructure, create jobs and strengthen the competitiveness of Nigerian airlines.

The settlement comes as the government seeks to improve the management of aviation assets and attract private-sector investment into the industry.

Further details of the revised concession terms and the proposed aircraft leasing company are expected to clarify the financial and operational implications of the agreements for the government, Bi-Courtney and the wider aviation sector.