The Federal Government decided to renegotiate the concession agreement for the Murtala Muhammed Airport Terminal II in order to restore investor confidence, ensure fairness, and resolve years of disputes surrounding one of Nigeria’s most contentious public-private partnership projects in the aviation industry, according to Olubunmi Kuku, Managing Director of the Federal Airports Authority of Nigeria.
At the African Air Transport Convention and Expo 2026 in Togo, Kuku discussed the significance of effective PPP models in infrastructure development and stated that the sustainability of such agreements depends primarily on institutional credibility, regulatory certainty, and project discipline.
Kuku explained that during the second day of the event, while speaking at a panel session on “Strategic Direction on Aviation Financing and Infrastructure Development,” she revealed that the Federal Government had carried out extensive renegotiations of the concession agreement. She noted that the process has now been completed and received approval from the Federal Executive Council (FEC).
She stated that many of the challenges experienced in concession projects are linked to issues of project continuity and market-related risks. Citing Nigeria as an example, Kuku pointed to the Bi-Courtney MM2 concession as one of the country’s most widely discussed projects, noting that it has been marked by disputes and controversies over the years.
“I’m pleased to report that we have worked hard to renegotiate the concession contract during this government. It has now been fixed. At the Federal Executive Council level, it has now been settled.
She stated that the resolution would serve as a framework for upcoming concession agreements and boost investor trust in Nigeria’s infrastructure sector. In other words, it gives individuals who want to lead PPP initiatives greater investor confidence. More significantly, it guarantees that future concession agreements are equitable to the public and private sectors, she continued.
In order to avoid future conflicts and enhance project execution, Kuku emphasized the necessity of more clarity in the management and administration of concession arrangements.
The head of FAAN urged greater regional contributions to infrastructure investment, especially in aviation connectivity and transport integration, looking beyond the MM2 concession.
In order to coordinate significant infrastructure projects, she supported the creation of national aviation delivery teams that would unite stakeholders from aviation, security, transportation, and governmental organizations.
“Aviation encompasses a number of industries, including transportation, internal administration, and security. Bringing all stakeholders together guarantees that the appropriate people make the right decisions and facilitates clear coordination around infrastructure investments,” she said.
Additionally, Kuku advised against establishing new aviation-focused financial institutions, contending that instead, already-existing financial institutions should create specialized aviation desks that can comprehend industry-specific requirements and assist in the development of bankable projects.
“I vehemently oppose the establishment of new financial institutions. I would prefer that the current institutions set up specialized desks to comprehend the aviation environment and offer technical support for project preparation,” she stated.
Stronger cooperation between bankers and project promoters, in her opinion, would increase funding availability and improve project execution throughout the industry. She urged stakeholders to offer feasible initiatives while guaranteeing transparency regarding available financing mechanisms, emphasizing the significance of commitment from both project developers and lenders.
Kuku gave plans to expand the Lagos Red Rail Line to airport terminals as an example, pointing out that there are chances for co-financing agreements backed by revenue flows generated by airports.
“The Red Line from Lagos will be extended into our ports as part of our rail project. We have the cash flows to support co-financing, therefore there are options for us to do so,” she stated.
Stronger alliances, improved contract administration, and coordinated infrastructure planning, according to the FAAN chief, will be essential to enabling long-term growth in Nigeria’s aviation industry.
