…as Bi-Courtney waives #132bn damages
The Federal Executive Council (FEC) on Thursday has approved the creation of a Nigerian aircraft leasing company to bolster the capacity of domestic airlines.
This was disclosed by the Minister of Aviation and Aerospace Development, Festus Keyamo on Thursday.
Structured as a Special Purpose Vehicle (SPV), the initiative is designed to solve the perennial problem of equipment access for local carriers.
Briefing state house correspondents, Keyamo explained that the platform will allow Nigerian airlines to lease aircraft locally on both short- and long-term bases, reducing their reliance on volatile foreign leasing markets.
He noted that many domestic operators currently face frequent disruptions and repossessions because they cannot meet international lease obligations.
While the federal government will not provide direct funding, it will act as a guarantor for the leases and hold equity in the firm.
The Minister disclosed that the project has already attracted significant interest from international investors, driven by Nigeria’s high passenger traffic and strategic geographical position.
He also disclosed that the council also approved a landmark resolution to the 20-year legal battle surrounding the Murtala Muhammed Airport Terminal Two (MM2) in Lagos.
The Minister confirmed that the federal government has finally reached a comprehensive settlement with Bi-Courtney Aviation Services Limited, ending a dispute that spanned multiple administrations.
The conflict primarily involved financial claims, exclusivity rights, and control over airport terminals.
Central to the negotiation was a Supreme Court judgment awarding Bi-Courtney ₦132 billion in damages.
Keyamo revealed that as a primary condition of the settlement, the concessionaire agreed to waive this multi-billion naira claim entirely.
He further noted that Bi-Courtney has relinquished its demand for control over the Murtala Muhammed Airport Terminal One (MM1) and agreed to the removal of an exclusivity clause that previously barred other private airport operations in Lagos.
In exchange, he added that the federal government has restored the ownership of the abandoned Hotel and Conference Centre opposite MM2 to the concessionaire.
He further noted that the developer has been given a 24-month ultimatum to complete the facility, which will operate on a revenue-sharing basis with the government. Additionally, MM2 will now be permitted to host regional flight operations and expand its apron capacity.
