The Murtala Muhammed Airport in Lagos, Nigeria’s busiest aviation hub, is poised for a significant ₦712 billion rehabilitation spearheaded by the Federal Government. This ambitious project, championed by Aviation Minister Festus Keyamo, aims to modernize the aging terminal, expand the apron, improve access roads, and upgrade essential infrastructure. However, the project is facing a potential legal roadblock stemming from disputes over compensation for private jet hangar owners whose facilities are slated for demolition to make way for the expansion. This brewing conflict could lead to costly lawsuits and significant delays, jeopardizing the entire undertaking.
At the heart of the dispute are three major hangar facilities: the Dominion Hangar, owned by Bishop David Oyedepo’s Living Faith Church Worldwide; the EAN Hangar, accommodating several private jet operators; and Caverton’s hangar. These structures, essential for aircraft storage, maintenance, and repair, are situated on land designated for apron expansion, a critical component of the airport’s renovation. The hangar operators, having invested billions of naira in these facilities, are demanding substantial compensation for their demolition and relocation. They have already submitted valuation documents and proposed compensation figures to the Federal Airports Authority of Nigeria (FAAN). However, FAAN reportedly considers these sums exorbitant, creating an impasse that could escalate into legal battles.
The lack of clear communication and transparency regarding compensation has exacerbated tensions between the government and hangar operators. While FAAN has indicated relocation plans to a new section of the airport, specifics about compensation packages, including their size and timing, remain shrouded in uncertainty. This lack of clarity has fostered mistrust and fueled speculation that the unresolved compensation issue is a major contributor to the project’s delayed commencement. The situation is further complicated by ambiguity over which entity, FAAN or the Ministry of Aviation, is responsible for handling the compensation process, leading to a bureaucratic back-and-forth that hinders progress.
This ambiguity is further compounded by a lack of clear communication from both FAAN and the Ministry of Aviation. While FAAN spokesperson Ijeoma Nwosu-Igbo assures that affected businesses will not be abandoned, she provides no concrete details about compensation, deflecting inquiries to the Minister. Minister Keyamo, in turn, directs questions back to FAAN, creating a circular referral process that offers no tangible solutions. This lack of transparency and decisive action fuels anxieties among hangar operators and raises concerns about the government’s commitment to fair and timely compensation. The resulting uncertainty jeopardizes not only the hangar operators’ investments but also the timely execution of the airport rehabilitation project itself.
Retired Group Captain John Ojikutu, an aviation expert, criticizes what he perceives as ministerial overreach, emphasizing that compensation matters fall under FAAN’s jurisdiction. He argues that the Minister’s involvement in airport operations exceeds his mandate and that FAAN should be responsible for handling relocation and compensation. Furthermore, Ojikutu highlights the importance of adhering to established regulatory procedures, including verifying whether the Nigerian Civil Aviation Authority (NCAA) initially approved the hangar locations. He contends that if the NCAA granted approval, operators are entitled to full compensation; otherwise, legal disputes are inevitable. He stresses that aviation management must be guided by law and international standards, not political dictates, and that the NCAA, not the Minister, will be held accountable by international bodies like ICAO.
The stakes in this dispute are high for all involved. Hangar operators face the potential loss of multi-million-dollar investments without adequate compensation, while the government risks costly lawsuits and project delays. For airlines and airport users, the uncertainty translates into potential disruptions at Lagos airport, a critical transportation hub. While preliminary work has commenced on temporary facilities for airline staff, the unresolved hangar issue threatens to derail the entire rehabilitation project, potentially bogging it down in litigation for years. The situation serves as a crucial test of the government’s ability to balance its infrastructure ambitions with the rights and investments of the private sector. A decisive and equitable resolution to the compensation dispute is essential to ensure the successful and timely completion of the Murtala Muhammed Airport’s much-needed renovation.
