The protracted legal battle between AIC Limited, founded by the late business mogul Harry Akande, and the Federal Airports Authority of Nigeria (FAAN) has resurfaced as construction accelerates at Lagos’ Murtala Muhammed International Airport. At the centre of the dispute is a parcel of land leased to AIC in 1998, now targeted for expansion under FAAN’s N712 billion airport refurbishment project.
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Court documents reveal that FAAN granted AIC a 50-year lease over the land via a Deed of Lease dated February 17, 1998. The lease stipulated that the land be used for a flight path hotel and resort complex, a project intended to enhance Lagos’ international gateway with world-class hospitality facilities.
FAAN later moved to repossess the land, claiming it was essential for the airport’s master plan, particularly for constructing the international terminal. This triggered years of litigation stretching from Nigerian courts to arbitration panels in London.
The conflict reignited in August 2025 when AIC’s lawyers, from the chambers of Professor A.B. Kasunmu, wrote to FAAN warning against further encroachment. The letter, dated August 19, expressed dismay that FAAN had begun expansion works despite subsisting court orders.
“A certified copy of the order is enclosed for ease of reference. In light of this, we urge FAAN to immediately cease all ongoing activities on the site,” the letter read. It warned that continued construction could force AIC to initiate contempt proceedings. The lawyers emphasized that while their client supports airport modernization, it must respect legal processes, recalling a Federal High Court order in Suit No. FHC/L/CS/90/2013 directing both parties to maintain the status quo.
Efforts to obtain FAAN’s response were unsuccessful, with spokesperson Orah Obiageli not responding to calls or messages.
The dispute spans more than two decades, featuring numerous legal twists. In 2010, an arbitration panel chaired by the late Justice Kayode Esho awarded AIC $48 million in damages against FAAN for breaching the concession agreement tied to the abandoned hotel project. FAAN challenged the award at the Federal High Court in Lagos, which in 2013 dismissed AIC’s applications to enforce it. The Court of Appeal later overturned the lower court decision and remitted the case, prompting FAAN to escalate the matter to the Supreme Court, where it remains pending.
Frustrated by delays in Nigeria, AIC pursued enforcement of the 2010 award in the United Kingdom. In 2019, the High Court of Justice in England granted AIC leave to enforce the $48 million award plus interest, criticizing FAAN’s slow handling of its Nigerian appeal. The UK court initially ordered FAAN to provide security of $24.1 million, though the agency later obtained relief from sanctions. By November 2020, the UK Court of Appeal affirmed AIC’s right to enforce the award against FAAN.
Despite these rulings, the dispute persists as FAAN continues construction on the N712 billion refurbishment project, which includes expansion of the international terminal into the contested land. AIC insists that any development on the site without resolving the legal impasse constitutes contempt of court.
The saga underscores the complexities of Nigeria’s infrastructure contracts and the prolonged delays in enforcing legal and arbitration outcomes. While FAAN cites national interest and AIC asserts contractual rights, the extended stalemate has denied Lagos airport the potential benefits of the hotel and resort project.
As construction progresses, the focus will be on whether FAAN respects existing court orders or risks another protracted legal showdown with AIC. Nearly three decades after the initial lease, the land dispute remains a significant obstacle in Nigeria’s aviation development story.
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