A long-standing legal tussle between AIC Limited, founded by late business mogul Harry Akande, and the Federal Airports Authority of Nigeria (FAAN) has resurfaced amid intensified construction at Lagos’ Murtala Muhammed International Airport. The dispute centers on a parcel of land leased to AIC in 1998 for a flight path hotel and resort complex, now needed for FAAN’s N712 billion airport refurbishment projects. Court documents show FAAN granted AIC a 50-year lease for the land within the airport premises. However, FAAN later sought to repossess the land for airport expansion, triggering years of litigation in Nigeria and arbitration in London.

The conflict reignited in August 2025 when AIC’s lawyers warned FAAN against encroachment on the disputed land despite subsisting court orders. AIC’s lawyers, from the chambers of Professor A B Kasunmu, cited a Federal High Court order in Suit No. FHC/L/CS/90/2013 directs both parties to maintain the status quo. They warned FAAN to cease activities on the site or face contempt proceedings, stressing that mutual respect for legal processes is needed. FAAN did not respond to requests for comment.

The dispute spans over two decades with several legal twists. An arbitration panel awarded AIC $48 million in damages against FAAN in 2010 for violating the concession agreement. FAAN challenged this in Nigerian courts. The UK High Court of Justice granted AIC leave to enforce the award in 2019. The UK Court of Appeal upheld this right in 2020.

The N712 billion refurbishment project aims to expand the airport’s international terminal facilities, with plans extending into the disputed land. AIC protests that developing the site without resolving the legal impasse would amount to contempt of court. Stakeholders see the saga as illustrating complexities in Nigeria’s infrastructure contracts and enforcement challenges.

This legal battle highlights the challenges of balancing national interests with contractual obligations in Nigeria’s aviation sector. AIC Limited asserts its rights based on the original lease agreement and subsequent court rulings. Meanwhile, FAAN’s plans for airport expansion are part of a larger effort to enhance Nigeria’s aviation infrastructure. The outcome of this dispute could have implications for how similar conflicts are handled in the future.

As construction at the Lagos airport gathers pace, attention will be on whether FAAN respects existing court orders regarding the disputed land or if the legal showdown with AIC continues. The situation underscores the need for careful navigation of legal frameworks in major infrastructure projects in Nigeria.

With the legal dispute ongoing and construction progressing, stakeholders are watching closely. The case illustrates the complexities of infrastructure development in Nigeria, where legal disputes can impact timelines and project outcomes. Resolving this dispute is crucial for the uninterrupted execution of the N712 billion airport expansion project.

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