20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook

The Managing Director and Chief Executive of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, has described the resolution of the long-running concession dispute over the Murtala Muhammed Airport Terminal Two (MMA2), Lagos, as a major breakthrough that will strengthen investor confidence and reshape public-private partnership (PPP) frameworks in Nigeria’s aviation sector.

Kuku made the remarks at the African Air Transport Convention & Expo 2026 in Lomé, Togo, where she emphasized that successful aviation infrastructure delivery depends not only on funding, but also on strong institutions, regulatory certainty, and consistent policy implementation.

Her comments come after confirmation that the federal government has finally resolved a nearly 20-year concession dispute with Bi-Courtney Aviation Services Limited (BASL), operators of MMA2.

The MMA2 concession dispute, which began in the early 2000s, has been one of the most controversial cases in Nigeria’s aviation sector, shaping discussions around airport privatization and PPP agreements. According to reports, the resolution includes a settlement in which BASL will forgo a N130 billion judgement debt, while retaining responsibility for developing a conference centre opposite the MMA2 terminal. The deal effectively ends years of legal battles, regulatory disagreements, and operational uncertainty surrounding one of Nigeria’s most important airport infrastructure projects.

Kuku described MMA2 as one of the most widely discussed concession projects in Nigeria’s aviation history, noting that it generated prolonged uncertainty for investors and policymakers. She said the conclusion of the dispute sends a strong signal to investors that Nigeria is committed to stabilising its aviation PPP framework and improving contract enforcement.

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“It’s now been resolved. What that means is that it provides better investor confidence for those that are looking to drive PPP projects,” she said. She added that future concession agreements will be structured to ensure fairness between government and private investors, reducing the risk of prolonged disputes.

Industry analysts say the resolution could unlock new private sector participation in airport development projects, including terminal upgrades, cargo expansion, and service modernization. They also note that resolving long-standing disputes like MMA2 helps reduce perceived regulatory risk, which has historically discouraged foreign and domestic investment in Nigeria’s aviation infrastructure.

Beyond the MMA2 settlement, Kuku highlighted broader challenges facing aviation development across Africa, including policy inconsistency, funding gaps, and project delivery risks. She called for closer collaboration between governments, development finance institutions, and private investors to bridge Africa’s aviation infrastructure deficit.

Rather than creating new financing institutions, she recommended strengthening existing banks by establishing specialised aviation desks with technical expertise to support structured investments. Kuku also stressed the importance of early-stage engagement between project developers and financiers to ensure bankable infrastructure projects.

Kuku further revealed that FAAN has developed a multi-phase infrastructure roadmap covering short-, medium-, and long-term priorities across Nigeria’s airport network. In the short term, the focus is on stabilising airport operations and improving passenger experience.

Medium- and long-term plans include terminal upgrades, airside development, cargo infrastructure expansion, and modernization of safety systems. She added that FAAN is also evaluating secondary airports and exploring incentive mechanisms, including guarantee schemes, to encourage airline operations on underserved routes.

With the MMA2 concession dispute now resolved after 20 years, stakeholders say attention will shift to implementation, compliance monitoring, and ensuring that the settlement translates into improved efficiency and investor trust in Nigeria’s aviation sector.

20-Year MMA2 Concession Battle Ends, Boosting Nigeria Aviation PPP Outlook

FG Approves New York, Canada, Dubai Routes for United Nigeria Airlines 

The Federal Government has approved several international routes for United Nigeria Airlines, including New York, Canada, and Dubai, in a move aimed at boosting the participation of indigenous carriers in the lucrative global aviation market.

Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed the development on Thursday during the unveiling of two newly acquired Boeing 737-800 Next Generation (NG) aircraft by the airline in Lagos.

According to the minister, the route approvals form part of the government’s broader strategy to ensure Nigerian-owned airlines secure a larger share of international passenger traffic, which has long been dominated by foreign carriers.

“We are giving United about four or five routes now. We are giving them New York. We are giving you Canada. We are giving you Dubai. We are giving you some very fruitful routes now,” Keyamo said.

Keyamo lamented that foreign airlines currently control between 90 and 95 per cent of passenger traffic from Nigeria to major destinations across the world, despite bilateral agreements that grant Nigerian airlines reciprocal rights to operate those routes.

The minister stressed that the government is determined to empower local carriers to compete effectively on international routes and retain a larger share of aviation revenue within the country.

“That market is our market. It doesn’t belong to anybody. Under those bilateral service agreements, we also have reciprocal rights to run those routes. They have to enter that market and eat part of that market,” he said.

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The minister noted that the newly approved routes were granted ahead of the airline’s full capacity to operate them, expressing confidence in the carrier’s ongoing expansion programme.

The announcement came as United Nigeria Airlines unveiled two newly acquired Boeing 737-800NG aircraft, further strengthening its fleet and operational capabilities.

The aircraft, registered as 5N-CFB and 5N-CFC, were named after His Royal Majesty Igwe Nnaemeka Achebe, the Obi of Onitsha, and legendary Nigerian novelist Professor Chinua Achebe.

The airline said the new aircraft will help improve operational efficiency, reduce flight disruptions, and support its plans for regional and international expansion.

Industry observers see the acquisition as a major milestone in the airline’s ambition to become one of West Africa’s leading carriers.

Keyamo also revealed that President Bola Tinubu approved the establishment of a Nigerian aircraft leasing company designed to support domestic airlines in acquiring aircraft through government-backed financing arrangements.

According to him, access to affordable aircraft financing remains one of the biggest challenges facing local airlines, and the initiative is expected to ease fleet acquisition and expansion.

The minister described the route approvals as the outcome of more than two years of policy reforms and stakeholder engagement aimed at revitalising Nigeria’s aviation sector.

“It took about two and a half years for us to begin to reap the fruits of the policy direction that we laid down,” he said.

Beyond route approvals, Keyamo disclosed that the Federal Government is partnering with the Abia State Government to develop an international airport in the state.

He said United Nigeria Airlines is expected to eventually use the facility as one of its operational hubs, while Enugu International Airport is being positioned as a major cargo hub for the South-East region.

The minister also defended the government’s decision to support private airlines instead of reviving a national carrier, citing the collapse of Nigeria Airways as an example of how political interference can undermine airline operations.

Speaking at the event, Boeing representative Moore Ibekwe commended reforms introduced by the Ministry of Aviation and the Nigerian Civil Aviation Authority (NCAA).

He highlighted recent efforts to improve aircraft financing, technical training, safety standards, and regulatory efficiency, describing them as critical to the future growth of Nigeria’s aviation industry.

Ibekwe also noted that Boeing recently launched a technical training programme in Nigeria to support the development of local pilots and engineers.

According to him, Africa is expected to require about 1,200 new aircraft over the next 20 years, creating significant opportunities for Nigerian airlines.

“When I look at these two aircraft behind us today, I see much more than two airplanes. I see enormous potential. I would like to see United Nigeria grow into a 50-aircraft airline within the next decade,” he said.

The airline’s expansion plans align with previous disclosures by its Chairman, Professor Obiora Okonkwo, who said the carrier intends to significantly increase its fleet and expand beyond domestic and regional operations.

United Nigeria Airlines currently operates across major Nigerian cities and serves regional destinations, including Accra, Ghana.

The airline has outlined plans to launch services to destinations such as London, Rome, Jeddah, Dubai, and New York, as it seeks to establish itself as a major player in international aviation.

For many industry stakeholders, the approval of the new routes represents a significant boost for United Nigeria Airlines and a major step toward increasing Nigeria’s presence in the global aviation market.

FG Approves New York, Canada, Dubai Routes for United Nigeria Airlines

Witness Reveals How Sirika Approved Nigeria Air Consultancy Deal for Associate

The trial of former Minister of Aviation, Hadi Sirika, took a fresh turn on Wednesday as an investigator with the Economic and Financial Crimes Commission (EFCC) detailed before a Federal Capital Territory High Court in Abuja how the former minister allegedly influenced the award and extension of consultancy contracts linked to the controversial Nigeria Air project.

The EFCC witness, Christopher Odofin, testified before Justice Sylvanus Oriji that Sirika allegedly directed the award of a consultancy contract for the establishment of Nigeria Air to Tianaero Nigeria Limited, a company reportedly linked to Gabriel Tilmann, whom investigators described as a close associate of the former minister.

Sirika is facing trial alongside his daughter, Fatima Sirika; his son-in-law, Hamma Jalal Sule; and Al Buraq Global Investment Limited over an amended six-count charge bordering on abuse of office, contract fraud, and the alleged diversion of public funds. All the defendants have pleaded not guilty to the charges.

According to the witness, Tianaero Nigeria Limited was awarded an initial consultancy contract worth over N299 million on April 4, 2022, for services related to the establishment of Nigeria Air. Odofin told the court that the contract was subsequently extended on October 17, 2022, increasing its value to more than N599 million. The EFCC investigator alleged that findings from the commission’s investigation indicated that the extension was granted on Sirika’s instruction due to his relationship with Tilmann.

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Odofin further informed the court that investigators examined the mobile phone of former Permanent Secretary in the Ministry of Aviation, Enitan Muyiwa Abel, and allegedly discovered a voice note sent by Sirika while he was in Spain. According to the witness, the former minister instructed the permanent secretary to ensure that the consultancy contract was awarded to Tianaero Nigeria Limited. He also alleged that the contract did not pass through the Bureau of Public Procurement (BPP) before approval but was instead processed based on Sirika’s directive.

The witness told the court that payments relating to the consultancy contract were traced through the company’s accounts with Access Bank and Guaranty Trust Bank. He added that records obtained from the Corporate Affairs Commission (CAC) showed that Tianaero Nigeria Limited was incorporated on March 29, 2021, less than two years before it secured the consultancy contract.

Odofin said investigators tendered bank statements, CAC documents, and a compact disc containing the alleged voice note as exhibits before the court. The exhibits were subsequently admitted into evidence.

The testimony also revived concerns surrounding the controversial launch of Nigeria Air in 2023. In an earlier court appearance, the same witness alleged that the aircraft unveiled as Nigeria Air shortly before the end of former President Muhammadu Buhari’s administration was actually an Ethiopian Airlines aircraft temporarily brought into Nigeria for branding and display purposes. According to the witness, the aircraft remained in Nigeria for only a few days before returning to Ethiopia after the unveiling ceremony.

The claim forms part of the broader allegations being investigated by the EFCC regarding the implementation of the national carrier project during Sirika’s tenure as aviation minister.

Following Wednesday’s proceedings, Justice Oriji adjourned the matter until July 8 for the prosecution to play the audio recording allegedly sent by Sirika and for the continuation of hearing.

The case remains one of the most closely watched corruption trials involving a former cabinet member, given its connection to the controversial Nigeria Air project and the allegations of abuse of office and contract irregularities.

Witness Reveals How Sirika Approved Nigeria Air Consultancy Deal for Associate