The Minister of Aviation and Aerospace Development, Festus Keyamo, is likely to step in to resolve a long-standing legal dispute involving a multi-billion naira, unfinished four-star airport hotel and International Conference Centre, returning it to Bi-Courtney Aviation Service Limited, the operators of Murtala Muhammed Terminal Two, after nearly two decades in contention.
A private meeting took place last Thursday between the minister, key Bi-Courtney executives, and the Managing Director of the Federal Airport Authority of Nigeria, Olubunmi Kuku, at FAAN’s headquarters in Lagos.
Sources familiar with the meeting said the discussions focused on putting an end to the drawn-out conflict that has left the hotel and conference centre locked up.
The dispute began in 2005, when Bi-Courtney started building the hotel and conference facility on land provided by FAAN. The project later came to a halt due to disagreements over the terms of the concession.
In 2013, FAAN reportedly revoked the lease agreements given to Bi-Courtney, citing contract breaches and the firm’s failure to complete the developments within the agreed timeline.
Bi-Courtney responded by obtaining a court injunction stopping FAAN from reclaiming the sites, arguing that the delay was caused by FAAN’s lack of cooperation and support.
The company had previously expressed readiness to complete the hotel project, stating that FAAN’s conduct hindered progress.
Bi-Courtney reportedly stated, We are ready to finish the two projects, but we are completely scared of FAAN because of its antecedents. For example, we spent $2m to buy tiles and another $1.2m to airlift them for the projects, only for FAAN to frustrate us. What is more painful is that an international company that we signed agreements with on the two projects pulled out of Nigeria because of the harsh business environment.
Multiple insiders suggested the minister appeared inclined to authorize a restart of the hotel and conference centre developments. From what I gathered from the meeting, the Federal Government may allow the project to resume.
Efforts to reach the minister for comments were unsuccessful, as he did not reply to messages sent to his phone. Likewise, phone calls and texts to the spokespersons of FAAN and Bi-Courtney, Obiageli Orah and Yinka Olawuyi, respectively, went unanswered.
Aviation analyst John Ojukutu reacted positively to the move, advocating for more comprehensive concessioning in the sector. Government should have no business in the business of aviation. Anyways, if they give him back his property, I will congratulate him, and whenever they release it to him, he should then start counting his 35 years, he said.
The minister’s potential involvement could bring closure to the 19-year impasse and enable work on the hotel and conference centre to resume.