The resolution of a two-decade-long legal and administrative dispute between the Federal Government and Bi-Courtney Aviation Services Limited (BASL) could open a new chapter for Murtala Muhammed Airport Terminal Two (MMA2), as its owner, businessman and lawyer Wale Babalakin, signals plans to introduce regional flight services.
For nearly 20 years, litigation and administrative disagreements between FG and BASL constrained the terminal’s development ambitions, long-term infrastructure expansion and commercial potential.
BusinessDay observed that with the settlement of the longstanding dispute, attention is shifting from legal battles to the prospects of expanding MMA2’s operations.
Babalakin’s plan to introduce regional flights would mark a significant shift for the terminal, which has primarily handled domestic passenger traffic.
Designed to accommodate up to four million passengers annually, BusinessDay gathered that MMA2 has infrastructure and passenger-processing facilities that could support an expansion into regional aviation.
The expansion comes amid growth in Nigeria’s aviation sector. The country’s aviation market recorded 18.8 million domestic and international passengers in 2025, an 11.9 percent year-on-year increase, according to Federal Airports Authority of Nigeria (FAAN) data, reinforcing the potential for further growth in passenger traffic.
However, industry experts have argued that moving from a predominantly domestic operation to handling regional traffic would introduce additional operational demands, including immigration processing, customs integration, aircraft turnaround times, security protocols and passenger movement between lounges and boarding gates.
Samuel Caulcrick, former Rector of the Nigerian College of Aviation Technology (NCAT), explained that moving from a purely domestic model into a dual-tier hub is fueled by the pursuit of hard-currency revenues.
“The heart of the operational and structural dilemmas that MMA2 will face will be enormous. However, the financial motivation for BASL to capture regional flights is massive.
“The domestic PSC currently stands at N2,000 per passenger, which, given the devaluation of the naira, provides very little dollar-equivalent return for terminal maintenance and capital investments. On the other hand, the Regional and International PSC is priced at $80 per passenger, a massive, dollar-denominated revenue goldmine,” he stressed
Caulcrick added that capturing even a fraction of the West African regional market allows BASL to tap into dollar-denominated revenue streams necessary to recoup its original Public-Private Partnership (PPP) investments.
While the proposed expansion could give travellers more options and help decongest Lagos’ primary international airport, industry experts warned that infrastructure deficits, security requirements and terminal design constraints could turn the ambitious plan into an operational bottleneck.
Beyond passenger convenience, industry stakeholders identified the difference in Passenger Service Charge revenues as another important commercial consideration behind BASL’s interest in regional operations.
John Ojikutu, aviation security expert and Chief Executive Officer of Centurion Aviation Security and Safety Consult, stated that regional flights could provide MMA2 with a significant additional revenue stream.
Read also: 18-year MMA2 resolved dispute: BASL to launch regional flights, complete hotel project
He projected that expanding into regional operations could generate substantial returns for BASL.
“The advantage of regional flights to BASL’s MMA2 is an increase in its Passenger Services Charge revenues from about 200,000 average passengers annually, or $20 million (N26 billion) at an average of $100 per passenger,” Ojikutu said.
Despite the financial appeal, experts warned that MMA2 already experiences congestion during peak periods, and additional regional flights could worsen pressure on both landside and airside facilities.
Seyi Adewale, Chief Executive Officer of Mainstream Cargo Limited, said the terminal is experiencing operational strain, especially during periods of concentrated passenger and aircraft activity.
He added, “My observation of MMA2 operations is that it is gradually becoming congested, with maximum concentration points at specific times of the day. The congestion includes vehicular throughput, passenger access and facilitation, and aircraft taxiing or parking on the tarmac.
There are further demands on handling and cargo companies that support ground services and aircraft space utilisation from a commercial perspective.”
Adewale warned that without adequate planning and expansion, the additional demands could undermine the terminal’s ability to manage growing traffic.
“In short, traffic management, passenger management, tarmac space management, and the capacity of handling companies to manage complex demands during peak periods, combined with increasing airline preference and now regional flights, may lead to its albatross if not well programmed, managed, articulated, or expanded,” he said.
Speaking further, Ojikutu said MMA2’s security arrangements would require a comprehensive review before the terminal begins handling regional or international passenger traffic.
“If MMA2 must open for regional/international air and passenger traffic, the terminal security defence layers need to be reviewed and upgraded for the approval of the NCAA, and may need to be inspected or audited by ICAO. However, MMA2 was built and approved at first instance to handle regional traffic, but the long period of troubled relationships between political officeholders in government and BASL management created dysfunctions in the approved standards built into the terminal at its inception,” he stated.
Ojikutu also drew attention to the broader political considerations surrounding the proposed expansion, particularly the government’s plans for the reconstruction of the Murtala Muhammed International Airport (MMIA) terminal.
“The problem created by the reconstruction of the MMIA Terminal is a major reason for those in government administration to pipe down for Bi-Courtney. I hope it is not a way to distract Bi-Courtney away from bidding for the concession of the new MMIA Terminal whenever it is completed,” he said.
On his part, Caulcrick identified terminal design and passenger segregation as major compliance challenges under international aviation standards.
He argued that accommodating domestic and international passengers within the same concourse could create difficulties in meeting the requirements of international aviation regulators, including the International Civil Aviation Organisation (ICAO).
Growing competition in West Africa’s regional aviation market
Findings by BusinessDay showed that MMA2’s proposed entry into regional flight operations comes as Nigerian airlines are expanding their networks across West Africa, creating an increasingly competitive market for regional passenger traffic.
It was gathered that Air Peace leads Nigeria’s regional aviation market, operating flights from Lagos to Accra, Freetown, Monrovia, Abidjan, Dakar, Cotonou, Douala, Libreville, Bamako and Conakry.
Ibom Air also operates regional services to Accra, while United Nigeria Airlines recently launched its inaugural flight to the Ghanaian capital using a Bombardier CRJ900 aircraft, with plans to deploy 50-seat Embraer E145 aircraft.
ValueJet is also developing its regional connectivity options.
However, it was observed that Nigerian carriers face stiff competition from established foreign airlines with regional networks and international hubs.
Findings by our correspondent showed that Africa World Airlines (AWA), based in Accra, operates double-daily flights to Lagos and Abuja, with plans to increase its services to three daily frequencies.
ASKY Airlines, headquartered in Lomé, Togo, leverages its hub to connect passengers across West and Central Africa.
Major international operators, including Ethiopian Airlines, RwandAir, Kenya Airways, South African Airways, EgyptAir and Royal Air Maroc, also attract significant regional passenger traffic through their respective foreign hubs.
Against this competitive backdrop, MMA2’s proposed regional expansion presents an opportunity for BASL to broaden its commercial operations and attract a share of West Africa’s growing aviation market.
Experts, however, maintained that the success of the plan will depend not only on its ability to attract airlines and passengers but also on whether its existing infrastructure, security arrangements and passenger-processing facilities can accommodate the additional demands without worsening congestion.
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Ifeoma Okeke-Korieocha is the Aviation Correspondent at BusinessDay Media Limited, publishers of BusinessDay Newspapers.
She is also the Deputy Editor, BusinessDay Weekender Magazine, the Saturday Weekend edition of BusinessDay.
She holds a BSC in Mass Communication from the prestigious University of Nigeria, Nsukka and a Masters degree in Marketing at the University of Lagos.
As the lead writer on the aviation desk, Ifeoma is responsible and in charge of the three weekly aviation and travel pages in BusinessDay and BDSunday. She also overseas and edits all pages of BusinessDay Saturday Weekender.
She has written various investigative, features and news stories in aviation and business related issues and has been severally nominated for award in the category of Aviation Writer of the Year by the Nigeria Media Nite-Out awards; one of the Nigeria’s most prestigious media awards ceremonies.
Ifeoma is a one-time winner of the
prestigious Nigeria Media Merit Award under the ‘Aviation Writer of the Year’ Category.
She is the 2025 Eloy Award winner under the Print Media Journalist category.
She has undergone several journalism trainings by various prestigious organisations.
Ifeoma is also a fellow of the Female Reporters Leadership Fellowship of the Wole Soyinka Centre for Investigative Journalism.
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