The ₦712 billion expansion of Lagos’ Murtala Muhammed International Airport has reopened a long-standing legal battle between the Federal Airports Authority of Nigeria (FAAN) and AIC Limited, the company founded by the late businessman Harry Akande. The dispute centres on a parcel of land originally leased to AIC in 1998 for a hotel and resort project but now being used in FAAN’s airport refurbishment plan.
According to records, FAAN executed a 50-year lease with AIC on February 17, 1998, granting the company rights to develop a world-class hospitality complex within the airport premises. However, FAAN later sought to reclaim the land, claiming it was integral to the airport’s master plan and critical to terminal expansion. This move sparked decades of litigation in Nigerian courts and arbitration proceedings in London.
The row resurfaced in August 2025 when AIC’s lawyers, led by Professor A.B. Kasunmu (SAN), wrote to FAAN warning against encroachment. The letter, dated August 19, accused FAAN of violating subsisting court orders by commencing construction on the disputed site and threatened contempt proceedings. AIC’s counsel stressed that while their client supports the government’s airport modernization efforts, these must not trample on legal agreements.
The conflict has taken several twists over the years. In 2010, an arbitration tribunal chaired by Justice Kayode Esho awarded AIC $48 million in damages, ruling that FAAN had breached its concession obligations. FAAN challenged the award in the Federal High Court, which in 2013 set it aside and allowed FAAN to repossess the land. AIC appealed, and the Court of Appeal reversed the lower court’s decision, sending the case back for reassignment. FAAN subsequently took the matter to the Supreme Court, where it remains pending.
Meanwhile, AIC pursued enforcement overseas. In 2019, the High Court of Justice in England granted AIC permission to enforce the $48 million award plus interest, criticising FAAN for failing to diligently pursue its Nigerian appeal. Though FAAN sought to delay enforcement, the UK Court of Appeal in 2020 upheld AIC’s rights, further complicating the dispute.
Despite these legal battles, FAAN has proceeded with its ₦712bn expansion project, designed to expand international terminal capacity and enhance passenger experience. The contested land appears to be part of the project site, intensifying tensions. AIC insists that any development without resolving the dispute amounts to contempt of court.
Industry analysts view the saga as emblematic of Nigeria’s infrastructure challenges, where disputes drag on for decades, discouraging investors. While FAAN cites national interest and strategic development needs, AIC maintains that contractual obligations must be honoured.
Twenty-seven years after the original lease was signed, the battle remains unresolved. As construction gathers pace at Lagos airport, stakeholders are watching closely to see whether FAAN complies with court directives or risks another protracted showdown. The outcome may influence not only the future of Lagos’ aviation hub but also investor confidence in Nigeria’s infrastructure agreements.
