Judul : N712bn airport expansion stirs unresolved legal land battle
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N712bn airport expansion stirs unresolved legal land battle
The long-standing legal tussle between AIC Limited, a company founded by the late business mogul and socialite, Harry Akande, and the Federal Airports Authority of Nigeria has resurfaced as construction work intensifies at Lagos’ Murtala Muhammed International Airport. At the heart of the dispute is a parcel of land originally leased to AIC in 1998, now being eyed for expansion under FAAN’s N712bn airport refurbishment project.
According to court documents, FAAN had, by a Deed of Lease dated February 17, 1998, granted AIC Limited a 50-year lease over parcels of land within the airport premises. The agreement stipulated that the land be used exclusively for the development of a flight path hotel and resort complex. The project was meant to elevate Lagos’ international gateway with world-class hospitality facilities.
However, FAAN later moved to repossess the land, insisting that it was central to the airport’s master plan and critical for constructing the international terminal. This triggered years of litigation between the two parties, stretching from Nigeria’s courts to arbitration panels in London.
The conflict resurfaced in August 2025 when AIC’s lawyers, from the chambers of Professor A.B. Kasunmu, wrote to FAAN warning against encroachment on the disputed land. The letter, dated August 19 and obtained by our correspondent, expressed dismay that FAAN had commenced expansion works on the land despite subsisting court orders.
“A certified copy of the order is enclosed for ease of reference. In light of this, we urge FAAN to immediately cease all ongoing activities on the site,” the letter read. It warned that if FAAN persisted, AIC would be left with no choice but to initiate contempt proceedings.
The lawyers stressed that while their client supports the Federal Government’s commitment to modernizing airports, this must be done with mutual respect for legal processes. They recalled a Federal High Court order in Suit No. FHC/L/CS/90/2013 directs both parties to maintain the status quo.
“It has come to our attention that FAAN has recently entered and commenced activities on the disputed land. These actions are inconsistent with the subsisting proceedings and undermine our client’s rights,” the solicitors stated.
Efforts to obtain FAAN’s reaction proved abortive, as spokesperson Orah Obiageli did not respond to calls or messages.
The dispute dates back over two decades, with several legal twists. After 18 years of litigation, a Federal High Court in 2013 ruled in FAAN’s favour, allowing it to take possession of the land. However, AIC pursued further legal remedies, including arbitration.
In June 2010, an arbitration panel chaired by the late Justice Kayode Esho awarded AIC $48 million in damages against FAAN for violating the concession agreement. The award covered losses incurred from the abandoned hotel project.
FAAN challenged the decision at the Federal High Court in Lagos, which in 2013 set aside the award and dismissed AIC’s applications to enforce it. Dissatisfied, AIC appealed. The Court of Appeal later overturned the lower court’s decision and remitted the case for reassignment. FAAN then escalated the matter to the Supreme Court, where it remains pending.
Frustrated by the slow pace in Nigeria, AIC sought enforcement of the 2010 award in the United Kingdom. In 2019, the High Court of Justice in England granted AIC leave to enforce the award of $48m plus interest. The judge also criticised FAAN’s lack of diligence in pursuing its Nigerian appeal.
FAAN, however, sought to delay enforcement, arguing that the Nigerian Supreme Court was still considering its application. The British court, concerned about FAAN’s approach, initially ordered the agency to provide security worth $24.1 million. Though FAAN later secured relief from sanctions, AIC continued to press its case. By November 2020, the UK Court of Appeal granted AIC the right to enforce the award against FAAN.
Despite these rulings, the legal wrangling has persisted, leaving the dispute unresolved while construction at Lagos airport gathers pace.
The current refurbishment project, valued at N712bn, seeks to expand the airport’s international terminal facilities. FAAN’s plan appears to extend into the disputed parcel of land, prompting AIC’s renewed protests. The company maintains that any attempt to develop the site without resolving the legal impasse would amount to contempt of court.
For stakeholders, the saga illustrates the complexity of Nigeria’s infrastructure contracts and the long delays often encountered in their enforcement. Industry observers note that while both sides have valid claims—FAAN citing national interest and AIC asserting contractual rights—the prolonged legal stalemate has denied Lagos airport the benefit of a potentially transformative hospitality project.
With the airport renovation moving forward, the question now is whether FAAN will adhere to the current court rulings or face the possibility of another lengthy legal battle with AIC. One thing is certain: even 27 years after the original lease agreement, the land disagreement continues to be a persistent obstacle to the progress of Nigeria's aviation sector.
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