ABUJA, Nigeria (VOICE OF NAIJA)-The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, has said the Federal Government renegotiated the concession agreement for the Murtala Muhammed Airport Terminal II (MM2) to restore investor confidence, promote fairness and resolve longstanding disputes surrounding one of Nigeria’s most controversial public-private partnership projects in the aviation sector.
Speaking at the African Air Transport Convention and Expo 2026 in Togo, Kuku emphasised that the success and sustainability of PPP arrangements extend beyond funding and are largely dependent on institutional credibility, regulatory certainty and disciplined project execution.
During a panel session titled, “Strategic Direction on Aviation Financing and Infrastructure Development,” Kuku disclosed that the current administration undertook extensive efforts to review the concession agreement, a process that has now been completed and approved by the Federal Executive Council.
She said, “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.
READ ALSO:BREAKING: Tinubu Suspends FAAN Cashless Policy
“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.”
Kuku said the resolution would boost investor confidence in Nigeria’s infrastructure sector and provide a template for future concession agreements.
“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 stressed the need for greater transparency and clarity in the management of concession agreements to minimise disputes and improve project delivery.
Beyond the MM2 concession, Kuku called for stronger regional commitments to infrastructure financing, particularly in the areas of aviation connectivity and transport integration.
She also advocated the creation of national aviation delivery teams comprising stakeholders from aviation, security, transportation and other government agencies to coordinate major infrastructure projects.
“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 further warned against establishing new aviation-focused financing institutions, arguing that existing financial institutions should instead create specialised aviation desks capable of understanding the sector’s unique requirements and supporting the development of bankable projects.
“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.
According to her, improved collaboration between project promoters and financiers would enhance access to funding and strengthen project implementation across the aviation sector.
She also highlighted the need for commitment from both project developers and financiers, urging stakeholders to present viable projects while maintaining transparency regarding available financing options.
As an example, Kuku referenced plans to extend the Lagos Red Rail Line to airport terminals, noting that airport-generated revenues could support potential co-financing arrangements.
“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.
Kuku maintained that stronger partnerships, effective contract management and coordinated infrastructure planning would be crucial to unlocking sustainable growth in Nigeria’s aviation industry.