MMA2 concession resolution to spur more investments into aviation- - experts

 

MMA2 concession resolution to spur more investments into aviation- - experts 

Experts in the aviation industry have described as welcoming the move by the Federal Government to resolve the 20 year dispute it had with Bi- Courtney Aviation Services Limited (BASL), over the concession agreement concerning the Murtala Muhammed Airport Terminal 2 (MMA2), saying it will spur more investments in aviation infrastructure financing.

They said the deft move by the Ministry of Aviation and Aerospace Development has not only created a conducive investment climate in Nigeria's aviation ecosystem , but trigger confidence in the circle of players yearning to plough their resources to improve aviation infrastructure.

Speaking in separate interviews, the experts described the resolution as sufficient evidence that the President Bola Tinubu administration is committed to its ambition to attract public private partnerships into the aviation sector.

An industry operator , who declined nrd to named in print said there are far reaching implications on the development.

He said :" The resolution of the Murtala Muhammed Airport Terminal  (MMA2) concession disputes through negotiated settlements has significant implications for Nigeria's aviation infrastructure, PPP (Public-Private Partnership) landscape, and investor confidence.

 He described it as a potential turning point to unlock value and improved investor confidence.

 Reaching a negotiated settlement rather than prolonged litigation, he said  sends a positive signal to private investors, proving that the government can respect contractual agreements and resolve issues, which encourages long-term investment in aviation infrastructure

 Settling disputes, he further said  allows for the faster rehabilitation or construction of the terminal, alleviating bottlenecks and fostering economic growth, compared to the stalling effect of court cases.

He said :" A successful, clear resolution sets a precedent for how future disputes are handled, reducing legal uncertainties that previously plagued Nigeria's concession practice.

"Properly negotiated concessions ensure that the terminal meets modern standards, leading to improved service quality for passengers and improved efficiency compared to state-run alternatives.

The expert said the new arrangement will provide a learning curve for prospective investors, who need to emphasize clear Key Performance Indicators (KPIs) to prevent future disputes regarding profitability, maintenance, and service levels.

On his part, industry analyst and Chief Executive Officer of Centurion Securities Limited, Group Captain John Ojikutu (rtd), while lauding the resolution mechanism said the new arrangement will bring about the commencement of regional flight services out of the MMA2 terminal.

Such flights, Ojikutu said was covered in the scope of the concession in 2006 before the managers secured approval to embark on the project.

He said :" The Regional Fligjts Facilitation Services was part of the Concession given to Bi - Courtney MMA 2 in 2006 before it was approved to be built but the problems began with the successive administration after Obasanjo left office in 2007.

" The Regional Desk Terminal at MMA 2 should decongest the International Terminal if and only if those in the management of passengers facilitations wants it.

" It is all political and not policies.

. What is happening in the Nigeria Commercial Aviation is never meant for national development and progress but for personal gains or interests of only those in the administration of the government and the management of the agencies. 

" Babalakin has endured a lot that would have frustrated him out after wining many cases up to the Supreme Court against the Federal Government."

But, Ojikutu cautioned on the need to fix the necessary operational infrastructure before the regional flights are activated from the MMA 2.

He said :" Thanks for the grace given for apron expansion. I warned at the begining that the terminal building should be at the location of the Car Park to give room for Air parking area and the car park at the hotel location. Let us see how the apron will be expanded left to the Presidential Terminal Area and Right to NAF and Arik Hangars Areas."

He went on :" The reconstruction going on at the international terminal is creating passengers facilitation problems for the airlines and FAAN  has no where to run to but MMA2 that was planned over 20 years for the decongestion which 'jealously' was rejected by Bi - Courtney competitors especially, Arik Air and Virgin Nigeria. 

" The 'jealous' in the competition drove people like Ogunlesi who owns the Gatwick Airport from Nigeria especially from the Ogun State Airport in his home state. I  am waiting for Babalakin's comment after the Minister to know if he fully agrees with the present administration's action."

Speaking on the development, aviation sector analyst/ strategist and former Rector , Nigerian College of Aviation Technology (NCAT), Captain Samuel Caulcrick described the resolution as a positive signal for the aviation ecosystem.

Caulcrick said :" 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."

Bi- Courtney Aviation Services Limited has not officially responded to the development.

Last week, Minister of Aviation and Aerospace Development, Festus Keyamo successfully brokered a historic settlement between the Federal Government and Bi-Courtney Aviation Services Limited, bringing to a close a protracted dispute spanning over two decades.

The resolution , was the  long-standing disagreement surrounding the Murtala Muhammed Airport Terminal 2 (MMA2) .

The  Federal Executive Council (FEC) ,  described it as a significant turning point in Nigeria’s aviation history.

Under the terms of the negotiated settlement, Bi-Courtney  agreed to write off the N132 billion Supreme Court judgment debt previously owed by the Federal Government.

 In addition, the company  relinquished the exclusivity clause tied to the MMA2 concession and has handed back the Murtala Muhammed Airport Terminal 1 (MM1) to the Federal Government.

In return, the Federal Government restored to Bi-Courtney the rights to complete and operate the long-stalled hotel and conference centre project on a mutually beneficial revenue-sharing basis.

Furthermore, plans are  underway to relocate regional flight operations to MMA2, with provisions for apron expansion to accommodate increased traffic where necessary. This strategic move ensures that the Federal Government begins to earn immediate revenue from the revitalized arrangement.

Described as a “win-win” outcome for all parties, the agreement unlocks the full commercial and operational potential of MMA2, positioning it as a central hub for regional aviation. 

It also clears longstanding encumbrances that have hindered broader infrastructure development, including the proposed Lekki International Airport project.

Additionally, the deal aligns with forward-looking reforms in the aviation sector, including plans to establish a private-sector-driven aircraft leasing company aimed at supporting Nigerian airlines with access to modern fleets under competitive terms.

 Keyamo, commended all stakeholders for their commitment to dialogue and national interest, emphasizing that the resolution reflects the Federal Government’s dedication to fostering a conducive environment for investment, efficiency, and growth in the aviation industry.

This milestone agreement signals a new era of collaboration between the public and private sectors and underscores the administration’s resolve to remove legacy bottlenecks, enhance infrastructure, and reposition Nigeria as a leading aviation hub in Africa.