Airport cab operators in Nigeria are facing significant challenges in complying with the Federal Airports Authority of Nigeria's (FAAN) vehicle upgrade policy. The policy requires operators to upgrade to vehicles manufactured from 2012 onwards to improve safety, comfort, and service quality. However, operators claim that the cost of acquiring qualifying vehicles is beyond their reach, with prices ranging from N15 million to N18 million. This has raised concerns that many drivers and small operators may be forced out of business.
The cost of complying with FAAN's policy is a significant burden for airport cab operators. Prince Amosola, chairman of the airport cab operators, stated that the cost of a 2012 vehicle can range from N15 million to N18 million. This is a substantial amount considering that drivers may only take home about N10,000 from a week's work. Ekwuemeaku Alex of Edom Comfort Auto Lease Ltd explained that drivers' earnings are limited due to the number of passengers and competition for trips.
The financial burden of replacing vehicles is particularly difficult for operators who have acquired their existing cars through hire-purchase arrangements. Aliu Abdulazee Aliu of Gentle Drive said that a vehicle costing N18 million could become substantially more expensive when acquired on credit due to financing costs. The operators' concern is not just the upfront purchase price but also how long it would take to recover such an investment from airport trips.
FAAN increased its airport cab operational tariff from N500 to N1,500, citing inflation, rising maintenance costs, and economic pressures. However, operators argue that the market reality has changed faster than their ability to replace their fleets. They claim that buying a vehicle costing between N15 million and N18 million cannot easily be financed from current earnings. The operators are seeking a longer transition period to continue operating their existing vehicles while gradually replacing them.
The cost of qualifying vehicles varies substantially depending on the model, condition, and whether it is Nigerian-used or foreign-used. In Abuja, current listings for 2012 Toyota Corolla models range from about N4.5 million to N11.85 million, with an average of about N6.8 million. However, operators claim that the cost of a vehicle suitable for commercial airport operations is much higher.
The operators have explored electric vehicles following discussions with Festus Keyamo, Minister of Aviation and Aerospace Development. However, prices quoted for EV options are even higher, ranging from about N38 million to above N60 million. The operators are seeking a longer transition period and want all operators at the airport to compete under comparable conditions.
The dispute is ultimately about whether drivers' current earnings can support the cost of replacing their vehicles. The operators are prepared to meet higher vehicle standards but want FAAN to align the transition timetable with their capacity to finance replacement vehicles without losing their businesses. They have also raised concerns over vehicles converted under the Presidential Compressed Natural Gas initiative.
Key points
- Airport cab operators in Nigeria struggle to comply with FAAN's vehicle upgrade policy due to high replacement costs.
- The policy requires operators to upgrade to vehicles manufactured from 2012 onwards, but operators claim that the cost is beyond their reach.
- Operators are seeking a longer transition period to continue operating their existing vehicles while gradually replacing them.
