The protracted legal battle between AIC Limited and the Federal Airports Authority of Nigeria (FAAN) over a parcel of land at Lagos’ Murtala Muhammed International Airport has resurfaced, casting a shadow over the ongoing N712 billion airport refurbishment project. The dispute, originating from a 50-year lease agreement signed in 1998, centers on AIC’s claim to the land for the development of a flight path hotel and resort complex, a project envisioned to enhance the airport’s hospitality offerings significantly. FAAN, however, contends that the land is crucial for expanding the international terminal and falls within the airport’s master plan, leading to their attempt to repossess the property and triggering decades of legal wrangling.
The conflict reignited in August 2025 when AIC’s legal representatives issued a stern warning to FAAN against encroaching on the disputed land. The lawyers highlighted the ongoing court proceedings and emphasized the existence of a court order mandating both parties to maintain the status quo. They expressed concern that FAAN’s commencement of expansion works on the site disregarded the court order and infringed upon AIC’s rights. The letter warned of potential contempt of court proceedings should FAAN fail to cease activities on the land. While acknowledging the importance of modernizing the airport, AIC’s legal team stressed the necessity of respecting legal processes. FAAN’s official response to these renewed concerns remains elusive, adding further complexity to an already convoluted situation.
The legal saga between AIC and FAAN has spanned over two decades, traversing Nigerian courts and international arbitration panels. Initially, a Federal High Court ruled in FAAN’s favor in 2013, granting them possession of the land. However, AIC pursued further legal avenues, notably securing a $48 million arbitration award in 2010 for breach of contract, compensating for losses incurred from the stalled hotel project. FAAN contested this award in the Nigerian courts, leading to a protracted legal back-and-forth that escalated to the Supreme Court, where the case remains unresolved.
In a parallel effort, AIC sought to enforce the arbitration award in the United Kingdom. The UK High Court of Justice granted AIC leave to enforce the $48 million award plus interest in 2019, criticizing FAAN’s handling of the legal process in Nigeria. Despite FAAN’s attempts to delay enforcement, citing the pending Supreme Court case in Nigeria, the UK Court of Appeal ultimately upheld AIC’s right to enforce the award in 2020. This international dimension adds another layer of complexity to the dispute and underscores the challenges of enforcing contracts and legal decisions across jurisdictions.
The current airport refurbishment project, estimated at N712 billion, aims to significantly expand the international terminal facilities, and FAAN’s plans seemingly encroach upon the disputed land, reigniting the conflict with AIC. AIC maintains its stance that any development on the site without resolving the legal impasse constitutes contempt of court, setting the stage for a potential escalation of the legal battle. This long-standing dispute highlights the intricacies and challenges associated with infrastructure contracts in Nigeria and the often protracted delays in their enforcement.
The AIC-FAAN dispute serves as a cautionary tale, demonstrating how legal gridlock can impede critical infrastructure development. While FAAN argues for the project’s national importance, AIC asserts its contractual rights, leaving Lagos airport caught in the crossfire. This prolonged stalemate has deprived the airport of a potentially transformative hospitality project and underscores the need for effective mechanisms to resolve such disputes swiftly and fairly. As the airport remodeling continues, the focus remains on whether FAAN will respect the existing court orders or risk reigniting a full-blown legal confrontation with AIC, further delaying the realization of a much-needed airport upgrade. The unresolved land dispute, originating 27 years ago, continues to hamper Nigeria’s aviation progress and serves as a stark reminder of the complexities and potential pitfalls of long-term infrastructure contracts.
