At the centre of the renewed push is the concession agreement for the Murtala Muhammed Airport Terminal II, a project that has faced years of legal and operational tension between stakeholders. Officials now say the agreement has been fully reviewed and concluded at the highest level of government.
The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, made this known while speaking at the African Air Transport Convention and Expo 2026 in Togo, where she participated in a panel discussion on aviation financing and infrastructure development.
She explained that the Federal Government’s intervention was driven by the need to restore trust, reduce uncertainty, and create a more predictable framework for future concessions.
“It’s now been resolved at the Federal Executive Council level” — FAAN MD
Kuku noted that persistent disputes around infrastructure projects often stem from weak continuity, regulatory ambiguity, and exposure to market risks, factors that have affected investor confidence in Nigeria’s aviation sector.
“A lot of the challenges that we have seen are really around project continuity and market risks. 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.
“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. It’s now been resolved at the Federal Executive Council level.”
According to her, the resolution is expected to serve as a stabilising reference point for other infrastructure agreements, particularly those structured under public-private partnership (PPP) arrangements.
Investor confidence and fairness at the centre of new PPP approach
Beyond resolving past disputes, Kuku stressed that the outcome was designed to strengthen confidence among investors considering long-term infrastructure commitments in Nigeria.
“What that means is that it provides better investor confidence for those looking to drive PPP projects. More importantly, it ensures that future concession contracts are fair to both government and the private sector,” she added.
She emphasised that clarity in contract administration and stronger institutional discipline would be essential in preventing similar disputes in future projects.
Call for coordinated infrastructure planning across sectors
Looking beyond airport concessions, the FAAN boss advocated a more integrated approach to infrastructure development across aviation, transport, security, and government agencies.
“Aviation spans several sectors, from security and interior administration to transportation. Bringing all stakeholders together allows for clear collaboration around infrastructure investments and ensures the right decisions are made by the right people,” she said.
Kuku proposed the establishment of national aviation delivery teams that would coordinate stakeholders and improve execution of major projects across the sector.
Financing aviation differently: no new institutions, stronger specialist desks
On the issue of funding, she warned against creating new aviation-focused financial institutions, arguing instead for reform within existing banks and investment bodies.
“I strongly do not support setting up new financing institutions. I’d rather the existing institutions establish specialised desks to understand the aviation environment and provide technical support for project preparation,” she said.
Her position reflects a growing policy debate on whether Nigeria should expand financial architecture or deepen the capacity of existing institutions to handle complex infrastructure financing.
Linking transport systems and unlocking co-financing opportunities
Kuku also highlighted emerging opportunities for integrated transport systems, citing ongoing discussions around rail connectivity to airport terminals in Lagos.
“We do have a rail project, an extension of the Red Line from Lagos into our terminals. There are opportunities for us to potentially co-finance because we have the cash flows to support that,” she said.
The proposed linkage between rail and aviation infrastructure, she suggested, could open new funding pathways while improving passenger movement efficiency across Lagos’ transport network.
Outlook: building trust as the foundation of aviation growth
Overall, the FAAN leadership maintains that Nigeria’s aviation sector can only achieve sustainable growth if backed by stronger partnerships, clearer contractual frameworks, and coordinated infrastructure planning.
For Kuku, the resolution of the MM2 concession dispute marks not just the end of a protracted conflict, but a potential template for future public-private collaboration in one of Africa’s busiest aviation markets.