70 percent of airports across the world were said to have operated at a loss in 2017. Hence, most countries turned to concession as the most viable option to run the airports in a profitable and self-sustaining manner.
As the Federal Government of Nigeria prepares to sign off on a new wave of aviation concession agreements, the long shadow of past failures and errors looms over the negotiating table.
Failed airport concessions in Nigeria have historically been derailed by prolonged legal battles, breach of contract claims, and union pushback.
Following a 2003 Build, Operate, and Transfer (BOT) agreement, Bi-Courtney Aviation Services Limited, operators of the Murtala Muhammed Airport Terminal 2 (MMA2) concession, became mired in a bitter 20-year dispute with FAAN.
It escalated to a N132 billion Supreme Court judgment debt against the Federal Government. The contract suffered from constant wrangling over the General Aviation Terminal (MM1), exclusivity clauses, and unremitted concession fees.
