The Minister of Aviation and Aerospace Development, Festus Keyamo, may intervene to return a disputed multi-billion naira, yet-to-be-completed four-star airport hotel and International Conference Centre to Bi-Courtney Aviation Service Limited, operators of the Murtala Muhammed Terminal Two, after a 19-year protracted legal battle.
A closed-door meeting was held last Thursday between the minister, top officials of Bi-Courtney, and the Managing Director of the Federal Airport Authority of Nigeria, Olubunmi Kuku, at FAAN headquarters in Lagos.
Sources close to the meeting revealed that the discussion centred around resolving the long-standing dispute that has kept the hotel and conference center under lock.
The dispute between FAAN and Bi-Courtney dates back to 2005 when the company commenced construction of the Lagos airport hotel and conference centre on a land allocated by FAAN. However, the project stalled due disagreements over the concession agreement.
FAAN had in 2013 reportedly announced the termination of the leases granted to Bi-Courtney in 2013, citing breaches of contractual agreements and failure to complete the projects within the stipulated timeframe.
Bi-Courtney, however, obtained a court order restraining FAAN from repossessing the sites, arguing that the delays were due to FAAN’s failure to provide the necessary support for the project.
Bi-Courtney had previously stated it was ready to complete the hotel but was frustrated by FAAN’s actions.
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 sources privy to the meeting said the minister seemed willing to approve the resumption of the hotel and conference centre projects. “From what I gathered from the meeting, the Federal Government may allow the project to resume.
Attempts to speak to the minister on the development were fruitless as he didn’t respond to messages sent to his phone. Also, calls and text messages to the spokespersons of FAAN and Bi-Courtney, Obiageli Orah and Yinka Olawuyi, respectively, were not responded to.
Industry expert John Ojukutu welcomed the development, calling for full-scale concessions in the aviation industry. “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 stated.
The minister’s intervention may finally bring an end to the 19-year dispute and allow the completion of the hotel and conference center project.
