The Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, has said that the Federal Government’s decision to renegotiate the concession agreement for the Murtala Muhammed Airport Terminal II (MM2) was aimed at restoring investor confidence, ensuring fairness and resolving long-standing disputes surrounding one of Nigeria’s most debated public-private partnership (PPP) projects.
Kuku made the disclosure while speaking at the African Air Transport Convention and Expo 2026 in Togo. She stressed that successful PPP arrangements require more than access to funding, noting that institutional credibility, regulatory certainty and project discipline are essential for long-term sustainability.
Speaking during a panel session titled “Strategic Direction on Aviation Financing and Infrastructure Development,” Kuku revealed that the current administration had completed extensive negotiations on the MM2 concession agreement.
According to her, the renegotiation process has now been concluded and approved by the Federal Executive Council (FEC), bringing an end to years of uncertainty surrounding the project.
“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,” she said.
Kuku expressed satisfaction with the outcome of the negotiations, describing the resolution as a major step toward rebuilding trust among investors interested in Nigeria’s infrastructure sector.
“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 stated.
She explained that the agreement would provide a stronger framework for future concession projects by ensuring balanced terms for both government and private investors.
According to Kuku, the resolution sends a positive signal to local and international investors seeking opportunities in public-private partnership projects.
“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.
The FAAN chief also highlighted the need for greater transparency and clarity in the administration of concession agreements to prevent disputes and improve project execution.
Beyond the MM2 project, Kuku called for stronger regional commitments to aviation infrastructure financing and transport integration across Africa.
She 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 also opposed the establishment of new aviation-focused financing institutions. Instead, she urged existing financial institutions to develop specialised aviation desks capable of understanding industry-specific challenges 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 noted.
She maintained that stronger collaboration between project promoters and financiers would improve access to funding and enhance project delivery across the aviation sector.
The FAAN boss further encouraged stakeholders to present viable projects and maintain transparency regarding available financing opportunities.
As an example, she cited plans to extend the Lagos Red Rail Line to airport terminals, saying the project presents opportunities for co-financing supported by airport-generated revenue.
“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,” Kuku said.
She concluded that stronger partnerships, effective contract management and coordinated infrastructure planning would be critical to unlocking sustainable growth and development in Nigeria’s aviation industry.
