KEY POINTS

• FAAN says the renegotiated MM2 concession restores investor confidence and ends years of disputes.
• The Federal Executive Council has approved the resolved Bi-Courtney MM2 agreement.
• Kuku urges aviation desks at existing banks rather than new financing institutions.

The Managing Director of the Federal Airports Authority of Nigeria, Olubunmi Kuku, has explained that the Federal Government renegotiated the concession agreement for the Murtala Muhammed Airport Terminal II to restore investor confidence, ensure fairness and resolve years of disputes over one of the country’s most controversial public-private partnerships. She spoke at the African Air Transport Convention and Expo 2026 in Togo.

Resolving a long-running dispute

According to Kuku, the sustainability of such arrangements depends less on access to capital and more on institutional credibility, regulatory certainty and project discipline. She made the point during a panel titled “Strategic Direction on Aviation Financing and Infrastructure Development.”

Moreover, she said the administration had done extensive work to renegotiate the deal, which the Federal Executive Council has now approved. “If you look at the Nigerian example, one of the most talked-about concession projects has been the Bi-Courtney MM2 project, and it has generated a lot of noise and conflict over the years,” she said. Furthermore, she confirmed the outcome. “I’m happy to say that within this administration, we’ve done quite a bit of work in renegotiating the contract for the concession. It’s now been resolved at the Federal Executive Council level,” she added.

Consequently, Kuku said the resolution would strengthen investor confidence and serve as a framework for future concessions. According to her, it ensures that future contracts treat both government and the private sector fairly.

MM2 concession review, a blueprint for aviation financing

Looking beyond MM2, the FAAN boss called for stronger regional commitments to infrastructure financing, particularly in aviation connectivity. She advocated national aviation delivery teams that bring together stakeholders across aviation, security, transportation and government to coordinate major projects.

In addition, Kuku cautioned against creating new aviation-focused financing institutions. “I strongly do not support setting up new financing institutions. I’d rather the existing institutions establish specialised desks to understand the aviation environment,” she said. Therefore, she urged closer collaboration between project promoters and financiers, alongside transparency around available instruments.

Citing an example, Kuku pointed to plans to extend the Lagos Red Rail Line into airport terminals, noting room for co-financing backed by airport cash flows. Ultimately, she maintained that stronger partnerships, better contract management and coordinated planning would prove critical to unlocking long-term growth in Nigeria’s aviation sector.