Airport concession still raising dust

It is no longer news that the Federal Government is determined to concession four major airports in the country, including the Murtala Muhammed International Airport (MMIA), Lagos; Nnamdi Azikiwe International Airport (NAIA), Abuja; Mallam Aminu Kano International Airport (MAKIA) and Port Harcourt International Airport, Rivers.

Apart from major aviation unions’ staunch opposition to the concession, what is standing in the way of the planned concession of the airports is the lingering controversy over the concession of Murtala Mohammed Airport terminal two (MMA2) operated by Bi-Courtney Aviation Services Limited, an arm of The Resort Group owned by the legal luminary and businessman, Dr. Wale Babalakin.

The MMA2, which was the first experiment in airport concession in the country, has spanned over 10 years, but it has been a decade of chequered operation. It was a decade of claims and counterclaims between Bi-Courtney and the Federal Government represented by the Federal Airports Authority of Nigeria (FAAN).

It is on record that there are over 40 court cases instituted over the MMA2 bothering largely on the terms and scope of the concession with the General Aviation Terminal (GAT) of the MMA2 being the cornerstone of the controversy. The GAT, known as the old terminal where Arik Air, Air Peace and Overland operate from, according to Bi-Courtney, form part of the concession agreement, which it is entitled to manage and collect all accruable revenues, but the FAAN has continued to manage the GAT in flagrant disrespect to the spirit and letter of the contract.

There have been various rulings from the different court cases instituted on the MMA2 concession, majority of which are favouring the Babalakin’s group. In one of the court verdicts, N200billion was reportedly awarded against the Federal Government in favour of Bi-Courtney. It was on this premise that Babalakin recently claimed that Bi-Courtney is being owed over N200bn.

Legal counsel to Bi-Courtney, Mr. Tola Oshobi, a Senior Advocate of Nigeria (SAN), also said the Build, Operate and Transfer Agreement signed with the Federal Government was for a period of 36 years and not 12 years as being insinuated in some quarters, noting that they have all the documents which are also with FAAN.

The managing director of BASL, Capt. Jari Williams, during a facility tour of MMA2, disclosed that billions of naira had been sunk into installing state-of-the-art facilities for the commencement of regional operations, while appealing to the Nigeria Civil Aviation Authority (NCAA) to grant its approval to commence the operations.

He recalled that the NCAA had earlier given approval for the operations, but suddenly backtracked on the eve of the commencement while appealing to the regulatory authorities to grant the MMA2 necessary imprimatur to commence the operations.

In another claim, aviation unions - the National Union of Air Transport Employees (NUATE), Air Transport Services Senior Staff Association of Nigeria (ATSSAN) and the aviation wing of the Nigeria Union of Pensioners (NUP) - alleged that Bi-Courtney owed FAAN N2bn in failed remittance; the claim which the company rejected.

As the issues over the concession of Bi-Courtney linger, experts aver that any attempt to concession airports without resolving the MMA2 logjam and unravelling the truths and the various mysteries would be a null exercise. Besides, it could create a doubt in the minds of would-be investors and incoming concessionaires about the credibility and integrity of government.

Given that trust is an essential ingredient in the business climate, no investor would take the government seriously when agreements put in black and white are breached without remorse.

This is the case with the Federal Government/Bi-Courtney deal on the operation of MMA2 terminal, which was razed by fire before government invited investors to take over the reconstruction of the building.

However, the National Assembly through its committees (Senate and House of Representatives) on Aviation has vowed to resolve the controversy over MMA2. The committees were in Lagos recently as a follow-up to the previous visits to look at issues of the MMA2 and others affecting the aviation agencies. It would be recalled that the Senate Committee on Privatisation had paid earlier visit to Bi-Courtney, where the chairman, Senator Ben Bruce, insisted that the MMA2 concession agreements must be implemented.

The meeting was described as largely fruitful and productive towards finding a solution to the MMA2 challenge as the committee requested and got relevant documents on the concession. All eyes are now on the parliament to not only look at the issues in the most dispassionate manner but resolve the logjam.

The chairman of the Senate Committee on Aviation, Senator Muhammad Adamu Aliero and his House of Reps counterpart, Nkeiruka Onyejeocha, gave the assurance that the National Assembly was poised to resolving all the issues between the FAAN and BASL over the MMA2 concession.

Aliero said, “We are going to wade into this controversy between Bi-Courtney and the FAAN. We are going to do our very best to broker peace. I think that is exactly what the Joint Committee of the National Assembly is up to. To make sure that justice is done, we are poised to solving the lingering crisis for the benefit of Nigeria, Bi-Courtney and other stakeholders involved in the project.

“Of course we have requested for all the necessary documents and too; we are aware of the court judgements. So, we are going to explore whatever means available to bring a lasting solution to the issue on ground.”

Also, Onyejeocha said, “The visitation of today started from the international airport, and it is an assignment that will take us through all airports across the country. So, it is of immense important that we visit MMA2 today. And on the issue on ground, we have requested all necessary documents, which we believe will help us to get to the root of the matter. With the collaboration of everyone, we will try our best possible to resolve the logjam between Bi-Courtney and the FAAN.

“The truth of the matter is that Nigeria has to move on. And so, we are going to do everything humanly possible to see that we do what is good for Nigeria and will work effectively to ensure that there is unity and progress of the country. And having said that, we have requested that they give us the first and second agreements; and without prejudice to anyone, we will keep our fingers crossed until the end.”

Experts are of the opinion that both parties have to shift grounds towards resolving the crisis once and for all. While Bi-Courtney may be right in its numerous claims, it is believed that the current mess was precipitated by what an industry player calls ‘bureaucratic gaffe’ which foisted a palpable unsustainable agreement on the Federal Government. However, the Minister of State for Aviation, Hadi Sirika, had vowed that officials who signed the MMA2 concession agreement would be unraveled and prosecuted for doing a shoddy job, which created the current confusion.

Aviation analyst, Mr. Chris Aligbe, suggested that both parties would have to take aside lawsuits in resolving the logjam. He said, “The MMA2, from my own perspective, is one of the best mental shifts in the aviation industry in recent years. Unfortunately, that mental shift was done out of line with what it should have been. In resolving it, owners of the MMA2 will put off legalese. Legalism will not solve it. Whatever court has decided, throw off your wig and wear your agbada as a businessman.

“Government should shift from its grandstanding and resolve the issue because it is giving the country a bad image. So there must be a shift. Lawsuits will not go anywhere because there are so many questions over the agreements that brought it to being.”