By OKEREMU SAMUEL

A ₦132bn Claim, Years of Litigation & One Settlement: Keyamo’s Test of Aviation Leadership

FOR nearly two decades, the dispute between the Federal Government and Bi-Courtney Aviation Services Limited over the Murtala Muhammed Airport Terminal Two (MMA2) in Lagos represented a persistent challenge for Nigeria’s aviation sector. Now, a settlement signed on 20 October 2026, has opened a new chapter in the troubled concession relationship.

Festus Keyamo, SAN, Minister of Aviation and Aerospace Development, has emerged as a central figure in the negotiated resolution. By helping bring the parties to an agreement, he has strengthened his credentials as a minister prepared to tackle difficult commercial disputes.

Yet the real test begins after the signing. The government must ensure that the settlement produces clear financial benefits, restores commercial certainty and supports sustainable development at one of the country’s major airport facilities.

The Cost of Leaving Disputes Unresolved

The disagreement dates back to the 2003 concession agreement under which Bi-Courtney developed and operates MMA2. Over time, differences over contractual commitments, financial obligations and airport facilities developed into a prolonged legal battle.

At the heart of the dispute was Bi-Courtney’s judgment debt claim of approximately ₦132 billion, excluding accumulated interest. The Federal Government and FAAN, however, also had financial and operational concerns that complicated efforts to reach a mutually acceptable outcome.

As a result, the conflict became a cautionary example of the risks associated with public-private partnerships. Such arrangements depend on clear contracts, credible enforcement and a shared understanding of each party’s responsibilities. When those conditions break down, litigation can replace cooperation and delay decisions that affect public infrastructure.

Moreover, disputes that survive successive administrations can undermine investor confidence. Businesses need assurance that contractual disagreements will not remain unresolved indefinitely, while governments must protect public resources and maintain oversight of essential infrastructure.

Against this background, the new settlement represents an opportunity to replace prolonged confrontation with a more predictable commercial relationship.

A Compromise Reframes the MMA2 Relationship

Under the agreement, Bi-Courtney agreed to waive its judgment debt claim and interest. The Federal Government, in turn, agreed to relinquish specified historical financial claims.

The settlement also clarifies FAAN’s responsibility for the old domestic terminal, creates a framework for renewed concession revenue and provides for further development at MMA2 under agreed conditions.

Taken together, these provisions seek to establish a clearer basis for the parties’ future relationship. They may also reduce the uncertainty that has surrounded the concession for years.

However, the financial consequences require careful assessment. Waiving a claim is not the same as transferring cash to the government, and relinquishing historical claims may carry its own implications. Therefore, a proper evaluation must consider the full terms of the agreement, the obligations that remain and the benefits each party expects to receive.

The settlement’s credibility will ultimately rest on transparent implementation rather than the headline value of the disputed claim.

Beyond Bi-Courtney: Keyamo’s Broader Aviation Agenda

The MMA2 agreement forms part of a wider set of aviation initiatives pursued under Keyamo’s leadership.

For instance, his engagement with British authorities helped advance opportunities for Air Peace to operate the Lagos–London route. By creating additional competition on a major international route, the development highlighted the potential value of diplomatic and commercial negotiations in expanding market access.

Meanwhile, reforms associated with the Cape Town Convention aim to strengthen confidence in aircraft financing and leasing. These arrangements are particularly relevant to Nigerian airlines, which face substantial costs when acquiring aircraft and maintaining access to international financing.

Keyamo has also promoted cooperation with global aircraft manufacturers, including Boeing and Airbus. At the domestic level, proposals such as Air Peace’s planned Maintenance, Repair and Overhaul facility seek to expand local technical capacity and reduce reliance on overseas maintenance providers.

Furthermore, plans for a Nigerian Aircraft Leasing Company and negotiations intended to ease financial pressures on domestic airlines point to efforts to address the industry’s structural challenges.

Nevertheless, these initiatives should not be treated as equally completed achievements. Some involve ongoing negotiations or proposed facilities, while others depend on implementation, financing and regulatory support. Their eventual contribution must therefore be measured by concrete outcomes.

Deal-Making Must Deliver More Than Headlines

Can Keyamo now be ranked as the greatest negotiating minister in Nigeria’s history? Such a conclusion would be subjective and would require a comprehensive assessment of ministers across different sectors and administrations.

A more defensible argument is that the MMA2 settlement strengthens his standing as an influential deal-maker within the aviation sector. Resolving a dispute that endured through several governments is a notable accomplishment, particularly where the parties had substantial financial interests at stake.

Even so, the ability to secure signatures should not become the sole measure of ministerial performance. Effective negotiation must also protect the public interest, establish enforceable obligations and deliver benefits that justify the compromises made.

For that reason, the government should communicate the settlement’s implementation milestones and clarify how the agreement will affect FAAN’s revenue, operational responsibilities and future development plans.

A Potential Model for Public-Private Dispute Resolution

If properly implemented, the agreement could offer lessons for other government contracts that have become trapped in prolonged litigation. Early engagement, transparent negotiations and clearly defined responsibilities can help parties avoid the economic costs of unresolved disputes.

Conversely, an agreement that fails to produce measurable benefits would weaken the argument that negotiation alone represents success.

Nigeria needs a commercial environment in which private investors can rely on credible agreements and public institutions can protect national interests without resorting to endless confrontation. Achieving that balance requires not only political will but also legal clarity, financial accountability and consistent enforcement.

Ultimately, the Bi-Courtney settlement gives Keyamo an opportunity to demonstrate the practical value of negotiated solutions. Whether it becomes one of Nigeria’s defining aviation achievements will depend on what follows: the revenue generated, the obligations fulfilled, the infrastructure delivered and the confidence restored.

The agreement may have closed a long chapter of litigation, but its real legacy will be written through implementation.