The Federal Government’s ambitious plan to rehabilitate the Murtala Muhammed Airport, Lagos, at a cost of ₦712bn, is facing a potential legal quagmire. Fresh findings indicate that disputes over compensation for private jet hangar owners may disrupt the project’s progress, raising fears of costly lawsuits and prolonged delays.
Investigations reveal that at least three major hangar facilities might be directly affected by the planned expansion. Among them are the Dominion Hangar, owned by Bishop David Oyedepo’s Living Faith Church Worldwide; the EAN Hangar, home to several private jet operators; and Caverton’s hangar. These facilities sit on land marked for apron expansion—an integral part of the rehabilitation blueprint.
In aviation, a hangar is a large, enclosed building designed primarily to store, maintain, and repair aircraft. These structures have wide openings and large doors to allow planes to move in and out, and they provide a protected environment from weather elements.
Industry insiders say operators are bracing for legal battles if the government fails to pay adequate compensation for the demolition and relocation of their multi-billion-naira facilities.
One aviation source familiar with the development disclosed that affected operators had already submitted valuation documents and proposed compensation figures to the Federal Airports Authority of Nigeria. However, FAAN reportedly considers the sums “enormous” and may struggle to raise the funds.
“Building just one hangar costs billions of naira. If FAAN or the ministry refuses to meet these demands, the matter will certainly end up in court,” the source, an official of the Federal Ministry of Aviation, spoke in confidence due to the lack of authorisation to speak on the matter.
The Minister of Aviation and Aerospace Development, Festus Keyamo, has championed the massive rehabilitation project to be executed by Chinese construction giant CCECC. The works will cover a complete overhaul of the old terminal, apron expansion, redesigned access roads, and major infrastructure upgrades.
Keyamo described the project as the first comprehensive renovation of the terminal since its construction decades ago. According to him, the redesign will correct long-standing flaws, including the absence of direct access to the departure floor at Terminal 2.
“We are constructing two new ring roads—one for arrivals, one for departures—and a bridge that will take travellers directly to the upper departure lounge,” Keyamo explained. “This will eliminate the design error of passengers lifting luggage up escalators.”
But while the minister has highlighted the scope of work, his breakdown of the N712bn budget did not include compensation for hangar owners—a glaring omission that industry stakeholders say could derail the entire exercise.
Silence and Suspicion
Our correspondent gathered that FAAN has informed affected operators of their relocation to a new section of the airport. However, no official communication has been made on the size or timing of compensation packages. This uncertainty has heightened tensions and deepened mistrust.
A worker at EAN Hangar, who requested anonymity, confirmed that the operators are carefully monitoring developments. “There won’t be any relocation without compensation. Everyone knows these facilities are worth billions. The operators are prepared to defend their interests,” she said.
Another source suggested that the unresolved compensation issue is partly responsible for the delay in full-scale commencement of the project. “The government seems unprepared for the financial burden of relocating these hangars. The lack of clarity is stalling progress,” the source added.
The matter is further complicated by apparent confusion over who—between FAAN and the ministry—should handle compensation. When contacted, FAAN’s spokesperson, Ijeoma Nwosu-Igbo, insisted that the renovation was a Federal Government project and referred inquiries to the minister.
While she assured that businesses would not be abandoned, she offered no concrete details on compensation. “The government has said they will do this project, and they will not leave anyone affected by it stranded,” she said.
Minister Keyamo, however, deflected questions back to FAAN, telling our correspondent via WhatsApp to “ask the MD, FAAN, Kuku to assist you with answers.” Repeated attempts to get responses from other ministry officials, including Keyamo’s media aide, proved abortive.
Aviation expert and retired Group Captain John Ojikutu faulted what he described as ministerial “overreach,” stressing that matters relating to compensation fall squarely under FAAN’s purview. “All the minister is doing at the airport is not his duty,” Ojikutu said. “It is FAAN’s responsibility to handle compensation and relocations.”
He warned that before discussing compensation, authorities must first determine whether the Nigerian Civil Aviation Authority granted approval for the affected hangars in the first place. “The airport has a master plan with the NCAA. If the NCAA approved those spots, then operators deserve full compensation. If not, the matter will end up in court,” he said.
According to Ojikutu, aviation cannot be managed by “common sense or political dictate.” He emphasised that all industry issues must be guided by law and international regulatory standards. “During assessments, ICAO will hold the NCAA accountable, not the minister,” he warned.
Beyond the technicalities, the stakes are enormous. Hangar operators face the prospect of losing multi-million-dollar facilities without clear guarantees of compensation. The government risks expensive lawsuits and further delays to a project billed as a national infrastructure priority. For scheduled airlines and airport users, the uncertainty raises fears of prolonged disruptions in Lagos, Nigeria’s busiest aviation hub.
Already, work has begun on a temporary building to house airline staff while the main terminal is refurbished. But sources caution that unless the hangar dispute is resolved quickly, the airport rehabilitation could be bogged down in litigation for years.
For now, both FAAN and the affected operators appear to be keeping their cards close. While officials insist that no business will be abandoned, operators privately maintain that no relocation will occur without “adequate and timely” compensation.
Industry watchers say the situation is a litmus test for the government’s ability to balance national infrastructure ambitions with private sector rights and investments. Unless the compensation issue is addressed decisively, the ₦712bn makeover of Lagos’ flagship airport may remain grounded before it even takes off.
