Federal Airports Authority of Nigeria. Photo: FAAN The Managing Director of the Federal Airports Authority of Nigeria, Olubunmi Kuku, has explained that the Federal Government’s decision to renegotiate the concession agreement for the Murtala Muhammed Airport Terminal II was aimed at restoring investor confidence, ensuring fairness and resolving years of disputes surrounding one of Nigeria’s most controversial public-private partnership projects in the aviation industry.
Speaking on the importance of successful PPP models in infrastructure development at the African Air Transport Convention and Expo 2026 in Togo, Kuku said the sustainability of such arrangements goes beyond access to capital and depends largely on institutional credibility, regulatory certainty and project discipline.
According to Kuku, who spoke on the second day of the event during a panel discussion titled, “Strategic Direction on Aviation Financing and Infrastructure Development,” the current administration undertook extensive efforts to renegotiate the concession agreement, a process that has now been concluded 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.
“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.” She noted that the resolution would strengthen investor confidence in Nigeria’s infrastructure sector and serve as a framework 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. Kuku stressed the need for greater clarity in the management and administration of concession arrangements to prevent future disputes and improve project delivery.
Kuku also cautioned against creating new aviation-focused financing institutions, arguing that existing financial institutions should instead develop specialised aviation desks capable of understanding industry-specific needs 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, stronger collaboration between project promoters and financiers would improve access to funding and enhance project execution across the sector.
“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. The FAAN chief maintained that stronger partnerships, better contract management and coordinated infrastructure planning would be critical to unlocking long-term growth in Nigeria’s aviation sector.
She noted that the resolution would strengthen investor confidence in Nigeria’s infrastructure sector and serve as a framework for future concession agreements. “What that means is that it provides better investor confidence for those looking to drive PPP projects.