The Managing Director of the Federal Airports Authority of Nigeria, Olubunmi Kuku, has said the Federal Government’s decision to renegotiate the concession agreement for the Murtala Muhammed Airport Terminal II was intended to restore investor confidence, promote fairness, and address longstanding disputes surrounding one of the aviation sector’s most contentious public-private partnership projects.

Speaking at the African Air Transport Convention and Expo 2026 in Togo, Kuku stressed that the success of public-private partnerships in infrastructure development extends beyond securing funding. She noted that their long-term sustainability depends on strong institutional credibility, regulatory certainty, and disciplined project execution.

According to Kuku, who spoke during a panel session titled “Strategic Direction on Aviation Financing and Infrastructure Development” on the second day of the event, the current administration invested significant effort in renegotiating the concession agreement.

She noted that the process has been successfully concluded and has received approval from the Federal Executive Council.

She said, “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.

“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 said the resolution would boost investor confidence in Nigeria’s infrastructure sector and provide a model for structuring and managing future concession agreements.

“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.

Kuku emphasised the importance of greater transparency and clearly defined governance structures in the management of concession agreements, noting that such measures are essential to preventing future disputes and enhancing project execution.

The FAAN boss also called for stronger regional commitments to infrastructure financing, with a particular focus on improving aviation connectivity and integrating transport networks across the continent.

She advocated the creation of national aviation delivery teams comprising stakeholders from the aviation, security, transportation and public sectors to improve coordination and drive the successful execution of 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 warned against establishing new aviation-specific financing institutions, arguing that existing financial institutions should instead create dedicated aviation units with the expertise to understand the sector’s unique requirements and help structure viable, 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 said.

According to Kuku, stronger collaboration between project developers and financiers would improve access to capital and support more effective project delivery across the aviation sector.

She also stressed the need for commitment from both parties, urging project promoters to present well-structured, viable proposals while calling for greater transparency from financiers regarding available funding instruments and financing options.

As an example, Kuku cited plans to extend the Lagos Red Rail Line to the airport terminals, noting that the project presents opportunities for co-financing arrangements backed by revenue generated from airport operations.